Property Accounting

Is Build-To-Rent Tax Unfair On Private Landlords?

The Government recently announced a new tax incentive targeted at build-to-rent developers – and ‘mum and dad’ property investors aren’t happy. The new bill gives these developers an exemption from the tax deductibility limitations that are placed on most private landlords. Private landlords feel this new regime is unfair, according to Stuff. However, these build-to-rent

2022-09-06T13:48:23+12:00September 6th, 2022|Property Accounting|

Should You Sell Your Rental Property?

With all the changes the government has introduced to residential property investment, is now the right time to sell your rental property and cash up? We look at the reasons to exit the market – and the reasons to keep holding. Although property prices rose by over 30% in 2021, the predicted flatten out or

2022-05-02T09:48:52+12:00May 2nd, 2022|Property Accounting|

New Purchase Price Allocation Rules

Buying or selling a business or a commercial property? There are new purchase price allocation rules you should be aware of. When land and buildings or a business is being sold, allocation of the purchase price between the business assets can result in different tax implications for the buyer and seller. In some situations,

2021-06-23T11:10:37+12:00June 23rd, 2021|Business Valuations, Property Accounting|

Amendments To Main Home Exemption Rules

The bright-line test’s main home exemption rules have been amended for residential land acquired on or after 27 March 2021. From that date the exemption rules will not be applied on an all-or-nothing basis for those property purchases, but instead the exemption will apply only for the period during which the property is actually used

2021-04-26T12:09:32+12:00April 26th, 2021|Property Accounting|

Loans For Rental Property Renovations

As part of the government’s proposed changes to claiming interest deductions against residential property income, the interest deductions for rental properties acquired on or after 27th March 2021 (other than for new builds – but yet to be confirmed) will not be permitted from 1st October 2021. If money is borrowed on or after 27th

2021-04-30T08:51:28+12:00April 26th, 2021|Property Accounting|

Removal of Deductions for Interest

The Government has announced its plans to make the housing marketing more accessible for first home buyers. One key change is the proposed removal of deductions for interest on residential rental properties. The rules will apply to all investment properties other than potentially new builds. These rules have not yet been finalised and the

2021-03-29T11:00:30+12:00March 29th, 2021|Property Accounting|

Bright-line Test Extension to 10 Years

The government has announced the changes it is introducing to make the property market more accessible for first home buyers. One of these major changes is the bright-line test extension, which is doubling from 5 years to 10 years. The bright-line test taxes profits from the sales of residential property if they are sold within

2021-03-29T10:26:26+12:00March 29th, 2021|Property Accounting|

Bright-line Test Taxes: Sale Of Bare Land

The bright-line test taxes the sales of residential properties which are sold within five years of purchase (or two years of purchase if the purchase occurred between 1st October 2015 and 28th March 2018 under the original bright-line test rules). Here we look at whether the bright-line test applies to the sale of bare land.

2021-02-12T10:49:36+12:00February 12th, 2021|Property Accounting|

Deducting Low-Value Assets On Rental Properties (Case Study)

Are you confused about the rules regarding deducting low-value assets on rental properties? Let’s take a look at the scenario where rental property owners have made improvements to the property with low-value asset purchases. They have added insulation in the ceiling and installed an extractor fan in the external wall of the bathroom. The government

2020-11-02T11:49:06+12:00November 2nd, 2020|Property Accounting, Tax|

Claiming Costs Of Healthy Homes Standards

The new healthy homes standards became law on 1st July 2019. These standards require residential rental properties to meet specified standards across areas including heating, ventilation, insulation and drainage. The deadline for landlords to provide a compliance statement for meeting the healthy homes standards has now been extended from 1st July 2020 to 1st December

2020-07-23T11:35:31+12:00July 23rd, 2020|Property Accounting|

Residential Ring-fencing Rules and 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 and 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

2021-08-02T10:04:50+12:00May 27th, 2020|Property Accounting|

Ring-fencing Rules When The Rental Changes

From time to time there may be a change in circumstances to a rental property that is classed as a “change in use”. For example, a property may be rented out to tenants for part of the financial year, and upon moving out the owner moves in and uses it as their main home. This

2021-05-17T14:46:40+12:00May 21st, 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|

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

2021-07-12T12:51:15+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

2023-03-11T15:42:47+12:00March 12th, 2019|Property Accounting|