While some income and expense categories as reported by business operators for tax purposes are real and ongoing, (such as motor vehicle expenses), some of these are more influenced by the operator’s particular circumstances, rather than actual revenue and running costs for a typical motel business. The intention of the survey is to examine revenue and expenses for accommodation sales to the exclusion of some other items of income or expense. We have excluded from the data the following income and expenses (if any):
Income
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Bartercard – (minimal)
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Commissions and/or Interest received
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Covid Wage Subsidies
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Covid Resurgence Payments
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Chargebacks – other parties
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Credit card surcharges
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Dividends
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Domestic Establishment Allowance – (benefit of “free living” declared as income for tax purposes)
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Insurance proceeds
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Maintenance fund reimbursements
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Rent received – off site
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Shop sales
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Vehicle personal use – for tax purposes
Expenses
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Bad debts and debt collection costs
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Bartercard costs
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Chargebacks or accommodation charges paid to other providers
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Depreciation - loss on sale of assets - lease amortisation
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Discretionary expenses - including, donations and entertainment
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Fringe Benefit Tax
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Home office expense – for tax purposes
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Interest
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Maintenance fund contributions
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Managers’ and/or minders’ remuneration – see appendix
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Motor vehicle expenses
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IRD penalties
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Owners – salaries – wages - drawings
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Professional fees – accountants – lawyers - valuers or consultants
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Rental paid between related parties, such as in the case of a Freehold Going Concern. (Such rentals may not reflect market levels)
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Shop supplies
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Travel and/or conference expenses – discretionary
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Variations in stock levels (for non-food and beverage operations)