Pitching for the Black Sox The Men’s World Softball Championships were held in Albany from 1 March – 10 March 2013. UHY Haines Norton client Heinie Shannon was one of the pitchers for the victorious Black Sox – Heinie made the headlines when he helped pitch the Black Sox to victory over Argentina despite being…Details
Building Success Congratulations to Phil and Gail Leach of PSL Construction, winners of the Placemakers Supreme Award in the 2012 NZ House of the Year. Their award winning house was a three bedroom cliff top house in Remuera which also won the New Homes over $2million category and the GIB Living Award. PSL Construction has…Details
The Government is to tighten the rules for tax deductions relating to holiday homes, charter yachts and aeroplanes known collectively as ‘mixed use assets’ (ie there is a portion of private and business use of the asset). These rules will apply from 1 April 2013 for most forms of ownership (i.e. personal, trusts, partnerships and ‘close companies’ – companies controlled by 5 or fewer persons).
The proposed changes are aimed at limiting the general deductions that can be claimed on a mixed use asset for the time that the asset is neither rented nor used privately but is available for rent.
It is proposed that expenses that are not directly attributable to either private use or taxable use will be required to be apportioned. The most common example will be holiday homes that are rented occasionally, though all mixed use assets are caught by the proposed rule change.
“Income Earning Expenditure” remains fully deductible as it relates solely to the use of the asset to derive income and has no private element (e.g. advertising expenditure).
“Deductible Apportioned Expenditure” is calculated as:Details
Depreciation: While depreciation for rental properties ceased from 1 April 2011 depreciation can still be claimed for some chattels including carpet, fencing, curtains, blinds and stoves. The general rule is that if the asset is separate from the house depreciation can be claimed. Special Tax Code Available for Rental Losses: Salary and wage earners who…Details
Significant Tax Changes from 1 April 2013
Three important tax changes take effect from 1 April 2013:
KiwiSaver Contribution Increase
From 1 April 2013 KiwiSaver employer contributions increase by 1% from 2% to 3%. The 2% employee contribution rate will also increase to 3%, employees contributing at the 4% or 8% rate will not be affected by the rate increase.
Student Loan Payments Increase
From 1 April 2013 the employee Student Loan Repayment Rate increases from 10% to 12% for all New Zealand-based borrowers earning over the repayment threshold ($19,084).
Tax Credit Changes for Children
As part of the Government’s 2012 budget, the tax credit for children was removed from 1 April 2012.
When the tax credit was in place children were able to earn a minimum income, tax free to the amount of $2,340.Details
The Road to the United Nations UHY Haines Norton Managing Director Grant Brownlee and wife Gail were proud parents when daughter Victoria attended the Top Scholars’ Awards Ceremony hosted by the Governor-General, Lieutenant General, Sir Jerry Mateparae at Government House in Auckland during February 2013. Despite Grant and Gail both being Chartered Accountants they haven’t…Details