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.
Last chance to share your Bright Spot...
From stunning sunsets to quirky murals - we're loving seeing the beautiful photos that members are sharing across the country. These local Bright Spots add a little colour and brighten the day.
Our Bright Spots campaign closes on Sunday, 15 July so time is running out to share yours. With 10 prizes of $250 Resene ColorShop vouchers and $250 Prezzy® cards up for grabs, do take a moment and share this happy place with us.
Enter your local Bright Spots pics here today and be in to *WIN*.
Happy hump day! Here's a new riddle for you, neighbours!
What freezes when it is heated up?
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.
Why are ghosts such bad liars?
...You can see right through them.
No, we haven't lost the plot! July 1st is International Joke Day and because laughter is good for your body, we want to get involved.
So, go on, jokers! Share your best joke below...
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