Posts Tagged ‘trickyquestions’
ARE 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 MoreARE SHARES TAXABLE INCOME?
Are shares taxable income? It’s something that many New Zealand investors ask The answer depends on how you acquired the shares, what income the shares produce, and why you hold them. A common misconception is that every gain from shares is taxable. New Zealand does not have a comprehensive capital gains tax. However, some share-related…
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, 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 heart of the…
Read MoreMOTOR VEHICLE FBT CHANGES
Motor vehicle FBT changes you say? Yes. The New Zealand Government has confirmed the most significant overhaul of the motor vehicle Fringe Benefit Tax (FBT) rules in decades. From 1 April 2027, employers will no longer calculate FBT primarily by counting the days a vehicle is available for private use. Instead, they will classify vehicles…
Read MoreTHE DANGERS OF USING AI TO DO YOUR TAX RETURN
The dangers of using AI to do your tax return? What dangers? Well…. We all know that artificial intelligence has become remarkably accessible. Today, anyone can ask ChatGPT, Gemini, Copilot, Claude, or another AI tool a tax question and receive an instant answer that appears authoritative and well researched. That convenience creates a real danger.…
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 MoreNZ TRUST TAX ISSUES WHEN MOVING TO AUSTRALIA
NZ Trust tax issues when moving to Australia. Is that “a thing”? Ooooh yes. Let’s explore: New Zealand trusts are often treated as simple, stable structures. That sense of stability can quickly unravel when trustees or beneficiaries move offshore—particularly to Australia. Every year, thousands of New Zealanders relocate across the Tasman for lifestyle, family, or…
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