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Thread ID: 64244	2005-12-08 18:20:00	A bit of a Bank - Tax fiddle	Eric Richards (6226)	PC World Chat

Post ID	Timestamp	Content	User
411412	2005-12-09 05:04:00	Terry's right - the fact that the interest cancels (or contributes to cancelling) the fees you pay to the bank is entirely co-incidental . Interest is counted as "income" and tax is collected as a result . I'm no accountant, but bank fees are not deductible against your tax . Hi I just got home I have not been down the entire thread, but yours seems to be the more logical one so far to respond to, First I got a statement today in the post for my "standard bank account" Transaction fess came to $6 . 60 without nameing banks because this could apply to "any" bank . (and the moderator must get upset . We will have for a example "NZ PC World" as my bank I have three accounts, with NZ PC world, or put another way I would llike to earn money from NZ PC world by leading them my money, So from two accounts at NZ PC World, I have paid 6 . 60 in bank fees and got $5 . 97 in “Interest earned” So my Gross earnings from NZ PC Worrld (on the two accounts) is 37 cents so what I am saying is I (we) should only pay tax on 37 Cents . I am NOT asking for my bank fees to be tax deductible That would like making petrol for the car tax deductible .	Eric Richards (6226)
411413	2005-12-09 05:21:00	I hope NZ PC world runs maths classes I need to redo maths 1 & 11 I am worse off by 63 cents. so why do I pay tax then on my negitive earnings from NZ PC world	Eric Richards (6226)
411414	2005-12-09 05:26:00	With figures of that magnitude,you need an accountant.	Cicero (40)
411415	2005-12-09 05:42:00	With figures of that magnitude,you need an accountant. Thanks Cicero Sometimes I just ........... [this line as been edited] ............ But anyway as I said I just got home I sould of focused on one thing writing a story,	Eric Richards (6226)
411416	2005-12-09 06:05:00	I still cannot work out the connection between the payment of bank transactions and the interest you may have earned, or why it is causing you angst. As I understand it, some banks pay small interest rates on some accounts that incur transaction fees as a sort of sweetener to attract custom. Other banks do not. Presumably if you had no transactions, you would not pay any transaction fees. Alternatively if you wanted to earn higher interest, then you would choose an account for your surplus funds that offers higher rates, eg term deposits can earn 7.5% at the moment. Perhaps the optimum thing to do is to have sufficient balance in the accounts that attract transaction fees so that the net interest will on the average equal transaction fees.	Terry Porritt (14)
411417	2005-12-09 06:58:00	First I have been up since 4am I went out for a 1/2 hour jog at 5pm, then I walked to work and back 3/4 of an hour away, I think I might make this my last posting before I go to bed, this thread is getting a bit sloppy with my mistakes, I don't understand how you people "can not get it" this is basic bookkeeping which I have bookkeeping I & II Many years ago you could put just a few dollors in your bank and get interest there were no bank fees . My bank is a company I would like to earn interest on my money I lend to them and hope they look after it . On the profit and loss account (this is bookkeeping talk) we have earning on one side of the account & expense on the other side, OK you come out winning with higher Interest than bank fees, You don't mind paying tax on the balance, just as if you put all your money into a company you don't have this fiddle . On the posting above I said "I am NOT asking for my bank fees to be tax deductible That would like making petrol for the car tax deductible . " Now if you earnt money from diving you car around you could get petrol for the car tax deductible, so long as you did not use it for private use, and you would pay tax on the profit you made . I just think it is sloppy accounting on the people who made the rules, if there are some rules . I think I will leave this thread for tomorrow, after a good night sleep	Eric Richards (6226)
411418	2005-12-09 07:28:00	To sleep: perchance to dream: ay, there's the rub.	Cicero (40)
411419	2005-12-09 17:46:00	G's Wayne I should of known better, some of the comments on this thread are a bit unlogical for the problem, and at the end of the day maybe I am making a dollar issue that is not worth a cent, if you get the analogy . It is Saturday now, two days I don't have to go work, I think who gives a S***, yesterday it was Friday I had to go to work, the job [xxxxxxx] me off, yet the topic seemed worth getting into, Something went wrong at work the other day, three of us was in the line, the person who did not finish the job fully, the Foreman was the next person then was me, of course I was the only one to get told off, The first person should of left a note on it to say the job was not finished yet, The foreman said “I should of checked it” yeah right! if I had of checked all of them he would of said “why are you going slow?, why are you checking them?” I told a fellow worker, ever since I got the job I am getting RSI on my middle finger, in fact I never used my middle finger before I got that job, I always considered it as only criminals use it to say “hello” to the TV news media . There was a good reason why I made a maths error last night, I got home and opened my bank mail to see I paid $6 . 60 in fees, I said to someone near by I got about $6 something in interest, I could not remember the correct amount last time I looked at that is was before I went to work, now I am back home again for two and a half days, Then I saw the $5 . 97 in the thread as $6 . 97, what I am trying to say is I am a totally useless proof reader . But anyway after I turned off from the thread last night, I rang a friend, his response was “bloody banks, . . . . . . rip off, blar blar blar . . . . . . . . go to a different bank, like Kiwi bank” so then I went to kiwi bank web site and found the address for the bank ombudsman, maybe I should just forget this thread it has used up enough good time and drop a short simple note to the ombudsman, and say “Am I right in thinking . . . . . . . . . . . . . this is the trivial reason I have . . . . . . . . . . . . . “ and if I get a reply it will be a extra bonus (that I know how to waste time) and if anything useful turns I could let you all know, I bet you can't wait . Honestly you see some stories on TV1 Fairgo and you think $%#@!@# haven't some people got better things to moan about (they are just like my foreman at work)	Eric Richards (6226)
411420	2005-12-09 21:32:00	I see dawn did not really bring light to the problem this morning:) Consider this: Your accounts are separate, not related,except being in your name, and each have their own fee structures. The interest earned on the savings account is not connected in any way shape or form whatsoever with charges incurred on your two other accounts, and if you pay in and withdraw money frequently, then the transaction fees may well exceed the interest earned. A savings account is meant to be just that. The interest rates paid are lower than term deposit because you can withdraw money at any time, and minimum balances are not as high, and to boot, transaction fees are applied each time you withdraw money. ANZ Serious Saver base is only 2%, the Bonus is 3.25% To minimise charges on your credit card account; 1) Pay the card off completely each month. 2) Do not get cash advances with it. To minimise charges on your cheque account; 1) Minimise transactions, do not use Eftpos to pay for lots of small purchases, pay cash instead. To minimise charges on your savings account; 1) Do not withdraw money, it is a savings account. Why not in the first instance just go along to your bank, and talk to them about how to minimise the transaction fees, and maximise your interest?	Terry Porritt (14)
411421	2005-12-09 22:53:00	I say Terry I do like your posting at 10:32 very good work I heard on TV a few years ago, this my example to explane it, Lets say each each month you buy something worth $50 with your credit card, but only pay off $49 Then each month you have to pay interest on $50 more as opposed to $1 more (as the balance might show thats not including the growing interest), and so this is why one should try and get onces credit card account into a credit as soon as one can, and before one puts any more things on to the credit card . By the way I forgot the fine print to the credit card rules, is there much difference in interest between put something worth $500 on the credit card and getting a $500 cash advance? I think I like to concept of leaving the super saver alone during the work holidays and getting a cash advance from the credit card, this way I will have to try harder not to spend money when I go back to work and pay off the credit card, (try harder not to spend money before I go back to work for that matter), of course the down side is, I pay more in interest and the tax man gets more out of me .	Eric Richards (6226)
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