Note - Covid 19 $5000 Low Value Asset Write-off Threshold Ends 16th March
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.
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Staying home over the break?
The long weekend is the perfect time to make your place safer for an earthquake with these steps:
• Find out where you can turn off your water and gas mains
• Check your chimney for any signs of wear and tear, or damage
• Check your home's foundations are secured
• Move heavy items that are up high to safer, lower down locations.
• Secure tall and heavy furniture and appliances
These simple actions can keep your whānau safer in case of a big shake, so tick them off and make the most of your break.
Win a Paddleboard This Weekend
🏄♀️ Don't miss out on your chance to win a paddleboard worth $1,000 from adviceHQ! 🏄♂️
Join us at the Waipu Easter Carnival this Saturday 30 March, and stop by the Waipu Waterfront Estate stand, where we are proud partners. Simply drop by to enter for your chance to win. See you there! 🌊
#paddleboard #giveaway
#WaipuEasterCarnival #WaipuWaterfrontEstate #adviceHQ
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