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UPDATE June 2023: See below for interest limitation rules Are you one of the many thousands of New Zealanders who are generating income through short term rental accommodation platforms like Airbnb, bookabach and holidayhouses.co.nz? Whether you are renting a guest room in your home as a side-hustle, or you rent out your family bach when it’s not in use, or you have a fully-fledged holiday home rental business, you should…  Read more

Repairs and maintenance can be a major cash outlay for an owner of a business or a rental property and hence the ability to claim an instant tax deduction can have a significant impact on the year end tax bill. What are the rules? Broadly speaking, expenditure on repairs and maintenance is an allowable tax deduction in the period it’s incurred. Capital expenditure is not deductible, but it is subject…  Read more

Aiming to curb soaring house prices, the government has introduced new rules phasing out the ability to deduct loan interest from rental income. For anyone who owns residential rental property, we suggest taking a look at how this change will affect you. Applicable properties The interest limitation rules apply to residential property in New Zealand. Any property with a dwelling on it (such as a house or apartment) is subject…  Read more

In an effort to level the playing field between property speculators/investors and home buyers, speculators and investors are no longer able to offset tax losses from their residential properties against their other income (eg salary or wages, or business income) to reduce their income tax liability. This legislation is known as ring-fencing of rental losses. The new rules limit a person’s deductions for expenditure incurred in relation to residential land…  Read more

It’s unusual for tax to be a front page issue but right now there are a lot of headlines being generated and a lot of hyperbole being used by many media commentators. This article is an attempt to look past the spin to make sure that you are up to speed with the tax changes that have occurred that will affect you now as well as the proposals that have…  Read more

From time to time we get asked by clients about moving their rental property into a different entity. Usually when doing this, a property will be “sold” to a related party. The reasons for the request vary but usually relate to a change in the relationship of the people that own the property, a perceived tax benefit from restructuring the finance at the same time as the ownership or else…  Read more