BlogSharesight Features & Tips

5 ways Sharesight helps NZ investors at tax time

by Angela Thompson, Sharesight

Because Sharesight was built with Kiwi investors in mind from the very start, it’s an essential tool for NZ investors. This is especially true at tax time, when Sharesight’s comprehensive tax reports (built according to IRD rules) save investors time, money… and surprises.

Read on to learn about important tax deadlines and the 5 ways Sharesight can help you this tax season:

  1. New Zealand tax settings
  2. Taxable Income Report
  3. Foreign Income Fund Report
  4. Traders Tax Report
  5. Secure portfolio sharing

featured - 5 ways Sharesight helps NZ investors at tax time

Important tax deadlines

  • 7 July 2020 – Income tax return due for people and organisations who don’t have a tax agent or extension of time

For individuals filing through a tax agent, check with your tax agent as this date will vary with a valid extension of time.

For more information, see: IRD 2019-2020 tax due date calendar (IR328)

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.

Sharesight tax settings - NZ

#2 – 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.

taxable income report - nz 2020

#3 – 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:

  1. Determine which of your holdings are subject to FIF
  2. Determine whether you exceed the FIF threshold amount (generally $50,000 for individuals)
  3. Calculate your FIF income under both the Fair Dividend Rate Method and Comparative Value Method

sharesight fif report - 2020 : 1

sharesight fif report - 2020 : 2

For more info, see: How to calculate your NZ FIF income

#4 – Traders Tax Report

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.

traders tax report - 2020

#5 – Secure 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…

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!

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