Property Accounting

Do Residential Ring-fencing Rules Apply To Mixed-use Assets?

Our previous article “Ring-fencing Of Residential Rental Property Losses” explained what these rules are and the circumstances under which they apply. Now we take a look at these residential ring-fencing rules on mixed-use assets. A common mixed-use asset scenario is where a person owns a rental property that is rented out for short-term accommodation as

2020-05-27T11:34:24+12:00May 27th, 2020|Property Accounting|

Ring-fencing Residential Rental Property Losses: Portfolio Basis Vs Property-By-Property Basis

A person may elect to apply the residential property loss ring-fencing rules either on a portfolio basis or on a property-by-property basis. Here we discuss and explain how the ring-fencing rules apply under each method. Portfolio Basis Unless a taxpayer elects otherwise, the loss ring-fencing rules will apply on a portfolio basis. This means that

2019-10-23T09:23:38+12:00October 23rd, 2019|Property Accounting|

Ring-fencing of Residential Rental Property Losses

The new ring-fencing rules of rental loss apply retrospectively from 1 April 2019 for the 2019/2020 and later income years. Inland Revenue issued an official paper entitled “Ring-fencing rental losses” in March 2018 outlining the proposal to ring-fence tax deductions on residential rental properties so that they could not be used to reduce tax on

2020-06-25T14:20:06+12:00September 4th, 2019|Property Accounting|

New Insulation Standards: Is The Cost Tax Deductible?

On 1st July 2019 the government introduced minimum insulation, heating and ventilation standards under the Residential Tenancies Act 1986. These standards include the requirement that ceiling and underfloor insulation must be installed in rental homes where it is reasonably practicable. As we explained in our previous article “Rental Properties: Which Expenses Can You Claim?” a

2019-08-14T11:13:27+12:00August 14th, 2019|Property Accounting, Tax|

Holiday Home And Short-Term Rental Taxes

Renting out your home, rental property or holiday home for a short-term period can be a great way to make some extra income when you’re not personally using those properties but don’t want to lock in long-term renters. Airbnb, Bookabach and other online accommodation companies make it extremely easy to list your property as they

2019-05-06T12:05:23+12:00May 6th, 2019|Property Accounting, Tax|

Rental Properties: Which Expenses Can You Claim?

If you own a rental property or are looking to invest in one, it’s worth understanding the different rental property expenses you may be able to claim to help lower your tax burden. Rental Property Expenses Which Are Tax Deductible Legal fees incurred during the process of purchasing the property. Accounting fees for the ongoing

2019-03-12T09:24:30+12:00March 12th, 2019|Property Accounting|

The Bright-line Test: Main Home Exclusion

Earlier this year the bright-line residential property rule was extended from two years to five years. The original two-year period still applies to properties purchased between 1st October 2015 and 28th March 2018, and from 29th March 2018 onwards the five-year bright-line test now applies. There are three main exclusions to the bright-line test: Family

2018-10-30T11:13:54+12:00October 30th, 2018|Property Accounting, Tax|

Ring-fencing: Promise Punishes Landlords

UHY Haines Norton’s Managing Director Grant Brownlee explains how the proposed ring-fencing of residential rental losses will impact residential property investors. The recently proposed ring-fencing of rental losses rule change is the result of a politically expedient election promise that blamed residential investors and speculators for house price inflation. The Government should be transparent about

2018-06-11T11:25:45+12:00June 11th, 2018|Property Accounting|