FINANCE
Tax doesn’t mean taxing your brain Susannah De Bievre, CEO, Beany
The “unprecedented” tax year is coming to an end. Many businesses are operating in a manner that would be unthinkable 18 months ago. Costs are scrutinised more closely. Tax incentives were established. Additional financial support became available.
It’s time to take a breather. It’s time to reduce your 2021 tax bill. It’s time to consider positive changes going forward.
Ideas for reducing your tax bill 1. New Healthy Home Standards start from 1 July 2021, and there’s fantastic motivation for landlords to spend money bringing rental properties up to (exceed) compliance requirements. Business assets purchased for less than $5,000 before 17 March 2021 can be immediately claimed as an expense for tax purposes. This includes items such as heating units, extractor fans and range hoods. The tax incentive applies to all business owners, so if you’re considering upgrading your mobile devices, installing a security system, buying a car, refurbishing the office, or anything
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The Real Estate Institute of New Zealand
in between, take advantage of the government’s generosity and purchase before 17 March! All things must come to an end - after this date, the threshold reduces to $1,000. 100% deductions If you purchase any asset for less than $5,000 before 16 March 2021, it can be fully claimed against your income for the year ended 31 March 2021. Assets can include your desk chair, table and the computer you use for work.
From 17 March 2021, the deductibility limit reduces to $1,000. You can also claim 100% of maintenance costs relating directly to your home office area, such as new carpet - the $5,000 or $1,000 thresholds don’t apply.
