Not a lot to talk about this week, not unsurprising I suggest, considering we are still suffering from post-holiday blues, although hard to believe the first month of 2021 is now behind us!
IR has released guidance for those of you interested in investing in standout yearlings (both thoroughbred and standardbred) which have been purchased with an intention to breed for future profit as if you were operating an existing bloodstock breeding business.
The guidance provides commentary as to your eligibility for income tax deductions, and includes discussion on purchase criteria and cost thresholds, what info to provide when notifying the Commissioner of a breeding for profit intention and equally info to provide when advising of a change of intention subsequently.
Investors will naturally be subject to taxation if the standout yearling is subsequently sold for a profit.
The guidance can be located on IR’s website, using the search term – ‘Standout yearlings at Karaka or Christchurch 2021’.
If you have any questions or would like a second opinion on any national or international tax issues, please contact me firstname.lastname@example.org