Quote Originally Posted by Snoopy View Post
I just call things as I see them out of my own experience dragonz. I don't claim to be an oracle. But if some of the stuff that I post is useful to you, and others, I guess that is good.
I am reviving a old thread here. AFAIK it is still relevant in the detail being discussed in it. It is titled 'trading' but I think it is equally relevant for those investing in bonds.

People who buy a bond, have in IRD terms entered into something called a 'financial arrangement'. In tax terms, this means that any income derived must be declared on an accrual basis rather than a money received on the day basis. However, what I was not aware of before today is that if you meet certain thresholds, you can declare money you receive from bond investments on a cash basis. I don't think this is a new law. But the information put out by the IRD explaining it all looks very recent (consultation on this is still open up until the middle of April 2022).

Have a look here:

https://www.taxtechnical.ird.govt.nz...items/pub00396

SNOOPY