Today I want to let you know about some of the most common mistakes you can make when working out your losses. It's a part of compliance that's often assumed as fairly easy. And yes it's straightforward, but there are also some niggly little areas you need to be aware of. That's where we come in. Here's a few areas you need to calculate correctly when it comes to loss. 1. Any loss that has been brought forward from the previous year needs to be properly adjusted. This is fairly important and Slater Chartered Accountants suggest you talk with Brett about how the team can cover this off for you properly. There are a few areas where this is vital, such as voluntary disclosures and audits, loss offsets made after a file has been returned and also using losses to make payments on shortfall penalties or foreign dividend payments. Boring I know, but it has to be done and done properly. 2. Trusts and Losses It's very important you understand that losses are not passed on to beneficiaries. We have our own specialist statutory area in at Slaters and we make sure this is done correctly. Passing losses on to beneficiaries muddies the waters, so be sure to ask if you are unsure or need help with this. 3. Individuals and Bankruptcy If you've had the misfortune of facing bankruptcy, you need to make sure that the losses brought forward do not already relate to debts that you've been discharged from having to pay. This is very important. Doing so is a bit like double dipping and The IRD doesn't look favourably upon this, as they feel they have already discharged the debt and freed you from considerable cost. These may seem to be fairly basic points, but they are some of the most obvious and frequent mistake areas given to the IRD each year by taxpayers with losses. If you have any doubts or need any help with your tax returns and filling them out, especially if you have losses, call the Team at Slater Chartered Accountants and we can help sort it quickly for you.
- Tags: Accountant, accounting, Chartered Accountant, Financial Statements, Financials, IRD, Tax, Tips, Xero