Property
RENTAL PROPERTY OR SHARES: WHICH IS BETTER FOR NZ INVESTORS?
Rental property or shares: which is better for NZ investors? There has been a lot of debate recently about whether one is better than the other. So how can you decide? Should you do one or the other? Or both? We examine the advantages and disadvantages of each. Scroll down for a case-study that might…
Read MoreINLAND REVENUE TAX AUDITS: WHY PROPERTY INVESTORS NEED BETTER RECORDS THAN EVER
Inland Revenue tax audits are increasing as IRD invests more heavily in compliance activity, data analysis, automated tools, and targeted reviews of property transactions. For New Zealand property investors, landlords, developers, and people caught by the bright-line rules, this means Inland Revenue now has a much stronger ability to detect undeclared income, GST errors, and incorrect…
Read MoreARE REPAIRS TO MY RENTAL PROPERTY TAX DEDUCTIBLE?
Are repairs to my rental property tax deductible? It’s a question nearly every landlord asks at some point – usually right after a tenant calls about a leaking roof or a rotten deck. The honest answer has always been “it depends,” but Inland Revenue has just made it a lot clearer exactly what it depends…
Read MoreCAN YOU RENT INVESTMENT PROPERTY TO YOUR FAMILY?
Can you rent investment property to your family? Helping a child save for a house deposit. Supporting elderly parents. Giving a sibling an affordable place to live. These are all common reasons why property owners consider renting a residential investment property to a family member. At first glance, it seems like a win-win arrangement. Your…
Read MoreWHEN CAN LAND SALES BE TAXED AS A PROFIT-MAKING SCHEME?
When can land sales be taxed? ie as a profit-making scheme? Inland Revenue has released a draft interpretation statement, PUB00519(opens in new tab), that revisits an issue which has been debated by tax advisors, property investors, developers, and Inland Revenue itself for decades. And it is potentially a huge shift in IRD thinking. At the…
Read MoreNEW BUILD VS EXISTING PROPERTY VS LAND & BUILD
New build vs existing property vs land & build: what is the right investment strategy? Property investment decisions rarely come down to a single “right” answer. One of the most common questions we get is whether it’s better to buy an existing property, purchase a new build, or go through the process of buying land…
Read MoreFAMILY TRUSTS NZ: BASIC CONCEPTS
Family trusts NZ basic concepts: Family trusts are one of the most commonly used legal structures in New Zealand—but also one of the most misunderstood. Many people hear about trusts from their lawyer or accountant and assume they provide automatic asset protection or tax advantages. Others set them up but don’t fully understand how they work,…
Read MoreARE RENTAL PROPERTY LEGAL FEES TAX-DEDUCTIBLE?
Are rental property legal fees tax-deductible? It’s something that rental property owners ask from time to time, and it regularly comes up when we are preparing annual accounts. The answer depends on why you incurred the legal cost, not simply that you paid it. Legal fees regularly arise for landlords: They appear during disputes, lease…
Read MoreCAN YOU DEDUCT HOLDING COSTS ON PRIVATELY USED PROPERTY THAT IS TAXED ON SALE?
Can you deduct holding costs on privately used property that is taxed on sale? That’s a good question. An example might be where you sold your property, perhaps a holiday home. It is caught by the Brightline Test (currently 2 years) and so the profit from the sale is taxable. You incurred some “holding costs”…
Read MoreLANDLORD’S PROTECTION INSURANCE: WHAT IS IT AND DO I NEED IT?
Landlord’s protection insurance: What is it and do you need it? Owning a rental property can provide a steady income stream and long-term capital growth. However, every landlord faces risks that can quickly turn a profitable investment into an expensive headache. While most property owners understand the importance of house insurance, many overlook another valuable…
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