"Providing accounting services of the highest quality from our Warkworth premises since 1988."
Blog Layout
Boats and aircraft may generate a tax liability
accelerateonline • August 17, 2017
Sometimes boats and aircraft are used for private and commercial purposes. In such cases, the income from their use may be liable for tax.
Boats and aircraft (valued at more than $50,000) become mixed-use assets if they are used privately sometimes, and commercially at other times – and not used at all for 62 days of the tax year.
Income-earning days include time you spend either occupying or using the asset to:
- Repair damage, provided it happened during income-earning days and isn’t normal wear and tear
- Relocate the asset, if you’re paid to do that.
But just taking the craft out for repair, or to fix normal wear and tear, is private use.
You must keep a detailed logbook for each mixed-use asset that records:
- Date of use
- Number of flying hours (if an aircraft)
- Who used the asset (owner or other)
- If not the owner, who was the skipper or pilot
- What the use was
- If you received payment and, if so, was it at least 80 percent of normal market rates.
Accelerate - December 2023
Accelerate August 2023
Inland Revenue have recently announced this year’s livestock Herd Scheme Values and we think this is a great opportunity to update you on the latest movements. The Herd Scheme Values are the National Average Market Values, determined by a process involving a review of the livestock market as at 30 April.
The values for Dairy this year have seen a fall in values across all female classes, but increases across all male classes. The fall in R1 heifer values can be attributed to the prohibition of live export by sea commencing from 30 April 2023. For the first time the National Average Market Value for R1 Heifers is less than the National Standard Cost of breeding and rearing an R1 Heifer.
In contrast to Dairy values Beef values have increased on average 9% and are almost at record values for all classes.
Sheep values have all fallen from the high of 2022, slipping back an average of 10.2%. Whilst values have fallen, they are still either the second or third highest that they have ever been depending on which class of sheep you are looking at.
Goat values have increased on average 7.8% with almost all classes of fibre and meat producing goats at record highs. The value of milking goats continues to be well down from historic highs, except for breeding bucks which are at their highest value.
Like the rest of the world, New Zealand has reeled from the aftermath of Covid, rising inflation and interest rates, and the cost-of-living crisis. This year we also have a massive storm damage repair bill.
Any tax cuts, or changes to the tax thresholds were vetoed in Budget 2023 as this was viewed as worsening inflation.
Budget 2023 builds on the $889m already provided in response to this year’s storms. A further $6b is allocated for a National Resilience Plan , for rebuilding after weather events. $71b is committed to new and existing infrastructure projects: not only storm damaged communications, power and roading, but schools, hospitals, public housing, rail and road.
