This has been discussed before. Service fee (costs of earning revenue) is deductible the write offs (capital loss) are not. Go back and have a look.
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HI there, check out our Investor FAQs on the site. We expect that fees paid by investors to Harmoney will be tax deductible. As each investors circumstances are different, we recommend that you(they) seek independent tax advice tat suits their objectives, financial situation and needs. Monica.mathis@harmoney.co.nz
Hi Cool Bear - we will put this onto our enhancements list. Cheers for the feedback. Monica.maths@harmoney.co.nz
In relation to the (not in business) individual taxpayer, of whom there must be many investing with Harmoney, I have had email discussions with Harmoney on the deductibility of charge-offs. The response from Harmoney: For charged off principal, due to that fact that we’re such a new asset class, it’s still up for debate. The IRD has not given us a definitive answer to this question. Harmoney is pursuing this matter with the IRD so we can give our investors a definite answer. Unfortunately there is no exact time frame on when it will arrive.
So the question remains: Is Harmoney still pursuing the IRD for an answer tothis question?
Or do all individual taxpayer investors need to seek professional advice (as it is a new asset class the professionals may need to undertake their own research). Whereas Harmoney could seek a ruling which could apply to a large class of its investors?
For an individual taxpayer, the extra cost of employing a professional to determine whether charge-offs (and indeed service charges) are deductible for an individual in itself will undermine their return from Harmoney in the first year - depending on the size of their investment.
Hi all
On the subject of transactions and statements. We are in the middle of enhancing our statements and they will be out soon. You will receive an email letting you know when they are complete. They will enhance the reporting of transactions - we hope you enjoy. Monica.mathis@harmoney.co.nz
Sorry "Ruling" is the wrong word...At risk of repetition, guidance for various classes (such as company taxpayers, individuals and individuals in the business) of investors is often sought by companies for the effect of proposals and actions. Harmoney have said they are pursuing this matter with the IRD so we can give our investors a definite answer.
SO it remains a reasonable question to ask if Harmoney are still pursuing the matter with the IRD so they can then pass on the response to their investors