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  • Staggered Tax Rebates

    Anyone claim a partial tax rebate from IRD halfway through the year? If so would anyone care to outline the process, forms needed etc? May be useful to some people here. I am interested too in this.

    xris
    Last edited by xris; 16-02-2008, 10:14 AM. Reason: typos

  • #2
    You use an IR23BS if you want your rebates back every time you get paid but I've not heard of a "partial rebate" Interested to know how that works also.

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    • #3
      What kind of tax are you wanting to rebate? GST? PAYE? Provisional Income Tax?

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      • #4
        Originally posted by pooomba View Post
        You use an IR23BS if you want your rebates back every time you get paid but I've not heard of a "partial rebate" Interested to know how that works also.
        I think that the IR23BS would work ok for someone with only 1 or 2 or 3 properties(i.e. improves their cashflow for the banks lending criteria from a weekly perspective), but if they are that tight on the money, then wouldn't it be better for them to know/understand the implications of their finances and the outcome of their spending.

        I would rather not use the tax code and take a lump sum as a refund from IRD at the end of the tax year.

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        • #5
          Why would you want to wait for your own money when you can have it now??

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          • #6
            I understand with the IR23BS you can decide weather you want you rebate back on a weekly, fornightly, monthly...etc basis. The regularity of the payment is dependent on your needs.

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            • #7
              Originally posted by Pooomba View Post
              Why would you want to wait for your own money when you can have it now??
              This was also discussed in depth in other threads here several times previous.

              In the end some investors understood they may have been eligible to get the money back sooner but preferred a lump sum amount instead.
              It was more useful in a lump sum and did not require careful management that the other option would have.

              It is pretty much the same debate with Interest only VS Principle & interest people. Really depends on the individuals circumstances, both options have there benefits and disadvantages.

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              • #8
                One advantage is your after tax weekly income is more so good when applying for finance when they use after tax amounts.
                Nigel Turner

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                • #9
                  Originally posted by whitt View Post
                  In the end some investors understood they may have been eligible to get the money back sooner but preferred a lump sum amount instead.
                  It was more useful in a lump sum and did not require careful management that the other option would have.
                  It is not really getting your money 'back' as most seem to call it, it is more about paying the correct amount of tax in the first place.
                  As I see it, the only management involved lies in calculating total expected income less expenses and submitting that number to the IRD on the IR23BS form. That calculation must surely be an integral part of running any type of business anyway.

                  There is no point in paying your money to the IRD only to get it back later. After all that is equivalent to having a compulsory savings account with 0% interest - not the most efficient tool in the investor's toolbox.
                  High resolution Fractal Art on quality canvas: www.FractalArt.co.nz

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                  • #10
                    Is this a simple thing to do or will my accountant bill me $800 for the priveledge?

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                    • #11
                      Probably both LOL....

                      Sorry, still in shock from our last accountant's bill

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                      • #12
                        Originally posted by Jumpin View Post
                        Is this a simple thing to do or will my accountant bill me $800 for the priveledge?
                        I'm sure your accountant would love to bill you for the privilege, but it takes 2 minutes to fill out the form and is very easy.
                        I just keep a running forecast of my earnings and whenever it changes enough for me to bother, I apply for a new updated tax rate.
                        High resolution Fractal Art on quality canvas: www.FractalArt.co.nz

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