FAQ - EPSOMTAX.COM - Property Accountants, Auckland

Compliance

What records do I need to keep for my rental property?

See this blog article

What are the compliance requirements for an LTC?

See this article and this one

I can't understand my Financial Statements!

Fear not. We explain them in simple terms here, or contact us to discuss.

I heard that there are some changes to reporting standards for small companies. How will this affect me?

Read all about it right here

What expenses can I claim?

Property investor? See this link. For an expense guide for businesses, see this page

What is a Solvency Resolution?

See here

Have you got a vehicle logbook I can use?

You can download one from IRD here

Where is your Do Not Sell link?

We don't sell client data. Never have. Never will. Period. You can read about our data privacy policy here

Tax

Why does the address on my tax assessment say Howick? I've never lived in Howick!

That's our IRD tax agency mailing address

How do I complete the online tax questionnaire?

Please see this article

I have some questions about the financial statements.

Your question might be here or here

I have some questions about my personal tax return.

See our growing list of questions here

What's the process for getting my tax returns done?

We explain it here

How does GST work on rental residential properties?

See our explanation

Does an LTC have to pay FBT?

No. But there are still tax considerations. Read about LTCs and company cars here. This article discusses the latest FBT changes

How do I know if I am tax-resident in New Zealand?

See our helpful article on this subject

Can I claim my insurance on my tax return?

Maybe. See this article... and this one

If the developer goes bust what costs can I claim?

See our lengthy answer here

How does tax pooling work?

Please see this article

Can I claim the repairs on my rental property?

It depends. Read our analysis here; includes a free chart and 5 situations in which extra care is needed.

Rental Property

What is depreciation?

See this article for an overview

What's the difference between negative and positive gearing?

The answer, together with worked examples and a checklist

How does negative gearing work?

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.

Is an LTC is the right ownership structure for your Residential Investment Property?

Watch this interview in which the pros and cons are discussed. Mostly still relevant, despite ring-fencing of residential rental property losses.

Have IRD published any videos on rental income?

Sure have. Watch this (links to a page on our website with IRD video embedded)

What factors do I need to consider when buying investment property?

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

Should I have all rental properties or should I diversify my portfolio?

Don't put all your eggs in one basket! See this interview

How can I ensure I've got enough to live on when I'm retired?

Watch this short presentation on How to Escape the Poverty Cycle

Have you got something that compares the most common structures for owning rental property? Y'know, pros and cons?

Yes! Watch this

Do you have any videos on trusts?

No. But we have some articles. Check out:

Common Rental Ownership Structures, Could Your Family Trust Be A Sham? and Family Trusts NZ: Basic Concepts.

What expenses can I claim?

See this video, produced by Inland Revenue

Other

How do I choose a good property manager?

Caveat emptor! Read this

Can I claim my insurance as a tax-deductible expense?

Maybe. See this article

How do I download loan transactions from my bank?

See here

Do you know anywhere that I can get cheap legal forms?

Try this website. If you want something customised from a lawyer, see our Partners page

Can you recommend any professionals in Australia?

Yes, please contact us

Where can I go to check if a company is insolvent?

The Insolvency and Trustee Service website allows you to search the Insolvency Register.

What about a good receipt-scanning program or service?

Try Receipt Bank, Xero also has its own Receipts App and some Xero subs also now include HubDoc.

Do you have any information on risk?

Yes, see here for a free Risk Profile tool

Epsomtax.com Limited use a fixed-fee model for annual accounts. If I get audited, or the IRD does a Risk Review, is that included?

No. We recommend you take out Audit Insurance to cover these costs: it could cost thousands of dollars to defend yourself, so this policy is a small price to pay, usually just a couple of hundred per year. And, the cost of the policy is tax-deductible.

Is there anywhere you know of that I can get some more information/upskill myself on accounting?

Sure, try Coursera, Alison and Accounting Degrees Online

Has there ever been any security breach?

Yes, one that we know of. See this link. Our previous website host Weebly contacted all affected subscribers last year. We have no evidence 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

What's the best way to structure our mortgages?

We have 6 suggestions for you.

What is an LTC?

See this article

How do you setup an LTC?

See our three-step guide here

Should I use a trust or an LTC to own my rental property?

Read our opinion here. See also Which Ownership Structure Should I Use For My Rental Property?

Are LTCs the best option for owning rental property?

Watch our short video on the subject

What about using a partnership to own my rental?

Here's what we think

What's the difference between an LAQC, a QC and an LTC?

Get yourself a coffee, and have a read of this article

Have you got something which compares Trusts, LTCs, Companies and Partnerships for property ownership?

Sure have. Served with pleasure here [chart]

If I sell the family home to an LTC, is the interest tax-deductible?

Yes, under certain circumstances. Read more here

Can my LTC pay for my overseas holiday?

Not exactly. See here for more info

What are the compliance requirements for an LTC?

See this article and this one

Are the losses from my rental property in NZ deductible overseas?

It depends on where you are living and working. See these articles for the rules in Australia, Malaysia, Singapore and UK

Trusts

Do you do gifting?

No, you need to see a lawyer for that. Please see our Partners page

Can you explain to me simply the basic concepts of family trusts?

Yes! See this article

What about trusts and Residential Care Subsidies?

Read our blog about a recent Court of Appeal decision here and how you may have inadvertently gifted excessively

I've got a family trust now. Do I need to do anything else?

Yes! See this article which explains the whys and hows in plain-speak

My lawyer takes care of the trust, and it only owns the family home, so I don't need to do anything

Woh there, not so fast! Find out here why that is sooo wrong, along with other common misconceptions about trusts

Chattels & Depreciation

Do you have any FAQs for depreciation?

Sure do! See here.

"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]

See this article

What's the point of getting a chattels valuation? Is it really necessary and/or worth the money?

Definitely! See here

What's depreciable and what isn't?

See this handy three-step guide

Software

What is Xero?

We explain here... with pictures too!

How do I complete the online tax questionnaire?

Please see this article

How do I download loan transactions from my bank?

See here

Should I use Xero, MYOB, Quicken..?

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

I have an overseas pension. How do I transfer the money over to NZ?

Read about what you should do, why and when here

Are the losses from my rental property in NZ deductible overseas?

It depends on where you are living and working. See these articles for the rules in Australia, Malaysia, Singapore and UK

Am I NZ tax-resident? How would I know if I am?

See our helpful article on this subject

Are there any issues moving to Australia if I have a trust in NZ?

Yes. There are some key things you MUST do before you more. See here

I live in Australia and want to buy a rental property in NZ. What do I need to know?

Read our comprehensive guide. See also this article, explaining how a typical NZ investment property purchase works

RE EPSOMTAX.COM

What is your postal and/or physical address?

Please go to our Contact page

What are your opening hours?

Please see our Contact page

Do you have a newsletter?

Yes we send out the odd email here and there. Click here to subscribe.

Can I pay you online?

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.

How do I make a complaint?

Please click here for our Complaints Process

Disclaimer? Privacy Policy? Refund Policy??

Sure. For our disclaimer and a high-level privacy policy, click here. For a more detailed privacy policy, data use policy, refund policy and anti-corruption policy, visit this page. And for terms and conditions of trade, click here.

What languages are spoken by staff at EpsomTax.com?

Among our staff who deal with clients, we have fluent speakers in English, Spanish, Portuguese, Tagalog, Sinhala, Japanese and Mandarin Chinese.

Do you use overseas outsourcing?

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 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.

Do you receive any sort of commission, bonus or kickback for referring us to other professionals? Do you pay others to get referrals?

No. We have never received any kind of kickback, bonus, or commission from any organizations or entities at any time. In addition, we do not pay commissions or the like for referrals from other organizations 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.

Do you ever make mistakes?

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.

Frequently Asked Questions

Compliance

Tax

Rental Property

Other

Structures Incl. LTCS

Trusts

Chattels & Depreciation

Software

Overseas

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