FAQ - EpsomTax.com - EPSOMTAX.COM

FREQUENTLY ASKED QUESTIONS

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COVID-19

Q: Do you have any COVID-19 specific advice?
A: Yes, see these articles

Q: Where is your COVID-19 Tracing Poster?
A: We are not allowing any on-premise visits until further notice, so a poster is not required. But it is easy to meet online. Just contact us to arrange.

COMPLIANCE

Q: What records do I need to keep for my rental property?
A: See this blog article

Q: What are the compliance requirements for an LTC?
A: See this article and this one

Q: I can't understand my Financial Statements!
A: Fear not. We explain them in simple terms here, or contact us to discuss.

Q: I heard that there are some changes to reporting standards for small companies. How will this affect me?
A: Read all about it right here

Q: What expenses can I claim?
A: See this video, produced by Inland Revenue.

Q: What is a Solvency Resolution?
A: See here (includes sample resolution)

Q: Have you got a vehicle logbook I can use?
A: You can download one from IRD here

Q: Where is your Do Not Sell link?
A: We don't sell client data. Never have. Never will. Period. You can read about our data privacy policy here

TAX

Q: Why does the address on my tax assessment say Howick? I've never lived in Howick!
A: That's our IRD tax agency mailing address

Q: How do I complete the online tax questionnaire?
A: Please see this article

Q: I have some questions about the financial statements.
A: Your question might be here or here

Q: I have some questions about my personal tax return.
A: See our growing list of questions here

Q: What's the process for getting my tax returns done?
A: We explain it here

Q: How does GST work on rental residential properties?
A: See our explanation

Q: Does an LTC have to pay FBT?
A: Sometimes. Read about LTCs and company cars here

Q: How do I know if I am tax-resident in New Zealand?
A: See our helpful article on this subject

Q: Can I claim my insurance on my tax return?
A: Maybe. See this article... and this one

Q: If the developer goes bust what costs can I claim?
A: See our lengthy answer here

Q: How does tax pooling work?
A. Please see this article

Q: Where can I find the GST Questionnaire?
A: Here

VIDEOS

Q: What is depreciation?
A: Short answer. Long answer

Q: What's the difference between negative and positive gearing?
A: The answer in 30 seconds

Q: How does negative gearing work?
A: See our very short video on the subject. Note that IRD have changed the rules around being able to offset losses from rental income, so you will need to get some advice.

Q: Is an LTC is the right ownership structure for your Residential Investment Property?
A: Watch this interview in which the pros and cons are discussed. Mostly still relevant, despite ring-fencing of residential rental property losses.

Q: Have IRD published any videos on rental income?
A: Sure have. Watch this

Q: What factors do I need to consider when buying investment property?
A: In this video watch the four absolutely essential characteristics of investment property that you must get right when looking to buy: Growth, Income, Tax Effectiveness, and Affordability

Q: Should I have all rental properties or should I diversify my portfolio?
A: Don't put all your eggs in one basket! See this interview

Q: How can I ensure I've got enough to live on when I'm retired?
A: Watch this short presentation on How to Escape the Poverty Cycle

Q: Have you got something that compares the most common structures for owning rental property? Y'know, pros and cons?
A: Yes! Watch this

Q: Do you have any videos on trusts?
A: Common Rental Ownership Structures, Could Your Family Trust Be A Sham?, and Which Ownership Structure Should I Use For My Rental Property?

Q: What expenses can I claim?
A: See this video, produced by Inland Revenue

OTHER

Q: How do I choose a good property manager?
A: Caveat emptor! Read this

Q: Can I claim my insurance as a tax-deductible expense?
A: Maybe. See this article

Q: How do I download loan transactions from my bank?
A: See here

Q: Do you know anywhere that I can get cheap legal forms?
A: Try this website. If you want something customised from a lawyer, see our Partners page

Q: Can you recommend any professionals in Australia?
A: Yes, see our Partners page

Q: Where can I go to check if a company is insolvent?
A: Try Insolvency Watch

Q: What about a good receipt-scanning program or service?
A: Try Receipt Bank, Xero also has its own Receipts App and some Xero subs also now include HubDoc.

Q: Do you have any information on risk?
A: Yes, see here for a free Risk Profile tool

Q. I pay fixed fee annual accounts. If I get audited, or the IRD does a Risk Review, is that included?
A. No: we are not audit specialist accountants. We recommend you take out AuditShield insurance to cover these costs: it could cost thousands of dollars to defend yourself, so AuditShield is a small price to pay.

Q: Is there anywhere you know of that I can get some more information/upskill myself on accounting?
A: Sure, try Coursera, Alison and Accounting Degrees Online

Q. Has there ever been any security breach?
A: Yes, one that we know of. See this link. Weebly (who host all of our websites) contacted all affected subscribers last year. However, we don't believe that our website was affected as we were not notified for any of the dozen or more sites we used. Furthermore, Weebly stated this in their press release: "Weebly recently became aware that an unauthorized party obtained email addresses and/or usernames, IP addresses and encrypted (bcrypt hashed) passwords for a large number of customers. At this point we do not have evidence of any customer website being improperly accessed."

STRUCTURES INCL. LTCs

Q: What's the best way to structure our mortgages?
A: We have 6 suggestions for you.

Q: What is an LTC?
A: Watch our short video on the subject

Q: How do you setup an LTC?
A: See our three-step guide here

Q: Should I use a trust or an LTC to own my rental property?
A: Read our opinion here. See also Which Ownership Structure Should I Use For My Rental Property?

Q: Are LTCs the best option for owning rental property?
A: Watch our short video on the subject

Q: What about using a partnership to own my rental?
A: Here's what we think

Q: What's the difference between an LAQC, a QC and an LTC?
A: Get yourself a coffee, and have a read of this article

Q: Have you got something which compares Trusts, LTCs, Companies and Partnerships for property ownership?
A: Sure have. Served with pleasure here [chart]

Q: If I sell the family home to an LTC, is the interest tax-deductible?
A: Yes, under certain circumstances. Read more here

Q: Does an LTC have to pay FBT?
A: Sometimes. Read about LTCs and company cars here

Q: Can my LTC pay for my overseas holiday?
A: Not exactly. See here for more info

Q: What are the compliance requirements for an LTC?
A: See this article and this one

Q: Are the losses from my rental property in NZ deductible overseas?
A: It depends on where you are living and working. See these articles for the rules in Australia, Malaysia, Singapore and UK

TRUSTS

Q: Do you do gifting?
A: No, you need to see a lawyer for that. Please see our Partners page for some suggestions.

Q: Can you explain to me simply the basic concepts of family trusts?
A: Yes! See this article

Q: What about trusts and Residential Care Subsidies?
A: Read our blog about a recent Court of Appeal decision here and how you may have inadvertently gifted excessively

Q: I've got a family trust now. Do I need to do anything else?
A: Yes! See this article which explains the whys and hows in plain-speak

Q: My lawyer takes care of the trust, and it only owns the family home, so I don't need to do anything
A: Woh there, not so fast! Find out here why that is sooo wrong, along with other common misconceptions about trusts

Q: Do you have any videos on trusts?
A: Common Rental Ownership Structures, Could Your Family Trust Be A Sham?, and Which Ownership Structure Should I Use For My Rental Property?

CHATTELS & DEPRECIATION

Q: Do you have any FAQs for depreciation?
A: Sure do! See here.

Q: "I have just heard from a friend that had sold their rental property that they are being asked by Inland Revenue about depreciation recovery and being charged thousands? What is the story with this? I was not aware about if you sold having to pay this back?" [Actual customer question]
A: See this article

Q: What's the point of getting a chattels valuation? Is it really necessary and/or worth the money?
A: Definitely! See here

Q: What's depreciable and what isn't?
A: See this handy three-step guide

SOFTWARE

Q: What is Xero?
A: We explain here... with pictures too!

Q: How do I complete the online tax questionnaire?
A: Please see this article

Q: How do I download loan transactions from my bank?
A: See here

Q: Should I use Xero, MYOB, Quicken..?
A: We think both Xero and MYOB Essentials are quite good. There are pros and cons to each, similar price points. Please contact us to discuss.

OVERSEAS

Q: I have an overseas pension. How do I transfer the money over to NZ?
A: Read about what you should do, why and when here

Q: Are the losses from my rental property in NZ deductible overseas?
A: It depends on where you are living and working. See these articles for the rules in Australia, Malaysia, Singapore and UK

Q: Am I NZ tax-resident? How would I know if I am?
A: See our helpful article on this subject

RE EPSOMTAX.COM

Q: What is your postal and/or physical address?
A: Please go to our Contact page

Q: What are your opening hours?
A: Please see our Contact page

Q: Do you have a newsletter?
A: Yes we send out the odd email here and there. Click here to subscribe.

Q: Can I pay you online?
A: Yes. Go to our Contact page for details. We accept Mastercard, VISA, direct credit and direct debit (via GoCardless) as well as GEM Visa; Amex coming soon.

Q: How do I make a complaint?
A: Please click here for our Complaints Process

Q: Some of your staff speak with a strong accent. Why don't you employ people who speak English properly?
A: We are an equal opportunities employer. Language ability is therefore only one of the things we consider. Whilst it is important to be understood, there are also many important qualities we look for in potential staff, such as integrity, patience, kindness, mildness etc. If you find that you have difficulty understanding one of our staff, please contact us (Attn: Mike or Asher) and we will be happy to assist.

Q: What languages are spoken by staff at EpsomTax.com?
A: Among our staff who deal with clients, we have fluent speakers in English, Spanish, Portuguese, Tagalog, Sinhala, Japanese and Mandarin Chinese.

Q: Do you use overseas outsourcing?
A: Yes, some of our work is done by accounting companies and people based overseas. We have worked with all of them for several years, put a lot of time into training them our systems, and established a good rapport. So we feel confident that the results generally meet standards. Of course, there are mistakes from time to time, but we have local reviewers who check the work to catch these, and due to human imperfection, mistakes will happen in any company.

Q: Do you receive any sort of commission, bonus or kickback for referring us to other professionals? Do you pay others to get referrals?
A: No. We have never received any kind of kickback, bonus or commission from any organisations or entities at any time. In addition, we do not pay commissions or the like for referrals from other organisations or entities. Such practices are against our company policy. This is because we feel that if we participated in arrangements of this sort we would lose our independence and our integrity could be compromised.

Q: Do you ever make mistakes?
A: Yes. Where you have imperfect people, mistakes and errors cannot be fully eliminated. However, when the error is discovered, we will do our best to put it right and compensate you for the inconvenience.