5 ways Sharesight helps NZ investors at tax time
Because Sharesight was built with Kiwi investors in mind from the very start, it’s an essential portfolio tool for NZ investors. This is especially true at tax time, when Sharesight’s valuable tax reports (built according to IRD rules) save investors time, money… and surprises.
With the NZ financial year coming to an end on 31 March, and the tax filing deadline for most individuals around the corner, now’s the perfect time to get your portfolio in order and ease any burdens a few months from now.
Important tax deadlines
31 March 2018
The 2016-2017 income tax return filing deadline if you file via a tax agent or have a valid time extension
7 July 2018
The 2017-2018 income tax return filing deadline if you don’t have a tax agent or valid time extension
31 March 2019
The 2017-2018 income tax return filing deadline if you file via a tax agent or have a valid time extension
Tax features within Sharesight
With all your dividends automatically captured and in one place, Sharesight makes tax-time a breeze. Here are a few more features that will save you both time and money this tax season:
#1 – New Zealand tax settings
Investors with a Sharesight portfolio tax residency set to “New Zealand” have a choice of the following tax settings which conform to Inland Revenue Department (IRD) tax reporting rules: Investor or Trader. They can also set their NZ Resident Withholding Tax Rate. For more information, check out our help page: Tax Residency of a Portfolio.
#2 – Foreign Income Fund Report
Kiwi investors who have certain types of overseas investments may have FIF income. And while the IRD has an online tool that lets you check if you are required to do anything under the FIF rules, if you determine that you do, the actual calculations can get quite complicated. The good news is that investors on a Sharesight NZ Expert or Sharesight NZ Pro plan can run their own FIF Report in just a few clicks. This allows you to:
- Determine which of your holdings are subject to FIF
- Calculate your ‘peak holding balance’
- Calculate your FIF income under both the Fair Dividend Rate Method and Comparative Value Method
For more info, see: How to calculate your 2018 FIF income
NOTE: Sharesight automatically flags your FIF holdings. Update 29 March - we have updated the list of holdings and taken the FIF report out of “draft” mode.
We recommend double-checking your FIF-included companies against the IRD calculator. If you notice any holdings that are not automatically included/excluded by Sharesight, please leave a message on our dedicated forum topic.
#3 – Traders Tax
Another report built specifically for NZ investors is the Traders Tax Report. It calculates taxable gains for individuals who hold shares on revenue account (who are classified as “traders” by the IRD). The report allows you to carry-over losses from the previous period and lets you select from various sale allocation methods (first in first out, first in last out, minimise capital gain, or maximise capital gain). The report is available to anyone on a Sharesight NZ Expert or Sharesight NZ Pro plan.
#4 – Taxable Income Report
The Taxable Income Report is also very useful this time of year as it breaks down all dividends over any time period, organised by local/overseas income and separates out withholding tax and imputation credits from the net dividend.
#5 – Portfolio sharing
Another essential tax-time feature is the ability to share your portfolio. Rather than printing-out and forwarding your Sharesight tax reports, you can securely share portfolio access directly with your accountant and/or financial advisor. With all your portfolio data in one place, they’ll have everything they need to prepare your tax documents. Available on all Sharesight plans, portfolio sharing ensures everyone’s on the same page and focusing on what really matters – not just at tax-time but throughout the year.
We have been using this great app for several years. It makes it easy to review portfolio performance, keep track of income and manage those awful FIF calculations at tax time. The subscription is easily recovered in time savings at year end…
MARGARET HOLMES — SHARESIGHT CLIENT SINCE 2010
Simply the best portfolio tracker for NZ investors
Join thousands of NZ investors already using Sharesight to manage their investment portfolios. To get started for FREE, simply sign-up and import your stocks and managed funds. Then watch as corporate actions such as dividends and stock splits are automatically incorporated. And there’s even a handy mobile app that lets you track your portfolio on the go!