Where is the scaffolding?

“You get this all the time with tradesmen.” 

This was the comment of a builder talking about the troubles of a friend. The friend, let’s call him Jim, was having difficulty coordinating a scaffolding company and the painter for his house.

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New rules for mileage

If you are in the habit of claiming your vehicle running expenses based on your mileage, you will need to know the new rules. 

The 5000 kilometre limit has been abolished. Instead, you look at your first 14,000km of total running. This is called tier 1 and the mileage rate is higher than it is for tier 2. 

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Ring-fencing rental losses

Labour’s pre-election manifesto proposed to increase the fairness of the tax system and improve housing affordability. In the six months since the Labour-led coalition entered Parliament, we have started to see some changes filtering through. 
 
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Bright-line breach warning

The bright-line test came into force from October 2015, introducing rules that a profit derived on the sale of a residential property is subject to tax if sold within two years of purchase, albeit subject to some exceptions such as the family home. These rules have recently been revised to extend the bright-line period from two years to five.
 
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What Is Landlord Insurance?

There are a multitude of rental house insurance policies available on the NZ market, with many insurers providing multiple variations of cover, hence the following can only provide a helicopter view of the general categories of cover and concepts.
 
Traditional cover (or standard cover) with tenancy occupation extension
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Advantages and disadvantages of cloud accounting

There is a growing trend for businesses today, whatever their size, to move to the “cloud”. The cloud is an online platform to make data and software accessible, anytime, anywhere and from any device. Gone are the days of being chained to your desk in a small cubicle. Now, with your data in the cloud, you can be fully flexible and enhance collaboration both within your business and with others. When an accounting system is cloud based, all transactions and entries are processed immediately.
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Loss offsets and subventions

The loss offset (and subvention payment) mechanism allows a ‘profit’ company to reduce its taxable income by utilising the tax losses of a ‘loss company’. The mechanism is a great tool that is commonly used.
 

Before a loss offset can be made, the following key requirements must be satisfied:

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Mixed use assets

When an asset, such as a bach or a boat, is used both privately and to generate income, prescriptive rules exist within the Income Tax Act that determine the extent to which a tax deduction is available. 
 
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