1354 days ago

Note - Covid 19 $5000 Low Value Asset Write-off Threshold Ends 16th March

Kim from Epiphany Accounting Solutions

The 12 month Inland Revenue Covid 19 assistance of being able to expense any asset purchase below $5000 is coming to an end. This option ends on the 16th of March 2021. This was a one-time/year deal.

If you are thinking about buying an asset for your company or sole trader organisation then it may be worth getting your purchase in before this date so that it can be immediately expensed rather than held as an asset and depreciated over a number of years. Thereby reducing this year's income tax.

I.e. New Asset $4500 - claim GST of $586.96, Net Asset Expensed $3913.04 = Reduction of Income Tax at the company rate of 28% =$1095.65

From the 17th of March the new rate of $1000 applies to the low-value asset write-off threshold.

But remember this only works out financially if it was actually an asset that you needed to buy in the coming months. I can't tell you the number of times I have heard of people spending money on things they did not really need in order to reduce their tax. It is a misunderstanding that is all too common.

More messages from your neighbours
4 days ago

Poll: When should the tree go up? 🎄

The Team from Neighbourly.co.nz

From what we've heard, some Christmas trees are already being assembled and decorated.

What are your thoughts on the best time to get your Christmas tree up?

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When should the tree go up? 🎄
  • 4.8% Second half of November
    4.8% Complete
  • 44% 1st December
    44% Complete
  • 17% A week before Christmas
    17% Complete
  • 33% Whenever you wish
    33% Complete
  • 1.2% Other - I'll share below
    1.2% Complete
2029 votes
9 hours ago

Poll: Should all neighbours have to contribute to improvements?

The Team from Neighbourly.co.nz

An Auckland court has ruled a woman doesn’t have to contribute towards the cost of fixing a driveway she shares with 10 neighbours.

When thinking about fences, driveways or tree felling, for example, do you think all neighbours should have to pay if the improvements directly benefit them?

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Should all neighbours have to contribute to improvements?
  • 82.1% Yes
    82.1% Complete
  • 15% No
    15% Complete
  • 2.9% Other - I'll share below
    2.9% Complete
487 votes
18 hours ago

Neighbourhood Challenge: Who Can Crack This One?

Riddler from The Neighbourly Riddler

This belongs to you, but everyone else uses it.

Do you think you know the answer to our daily riddle? Don't spoil it for your neighbours! Simply 'Like' this post and we'll post the answer in the comments below at 2pm.

Want to stop seeing riddles in your newsfeed?
Head here and hover on the Following button on the top right of the page (and it will show Unfollow) and then click it. If it is giving you the option to Follow, then you've successfully unfollowed the Riddles page.

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