Landlord of the Year Award 2010
posted Friday, Aug 20, 2010
The experience of entering Landlord of the Year was a really interesting one for my husband Lyle and I. It gave us the opportunity to sit down and examine not only our portfolio and how and why we had compiled it, but also to look at our maintenance schedules and tenant management practices. For the first time in quite a while we took the time to look at our property investment business (for that is what is had become, without our realising it), and could evaluate it, warts and all. It was quite...
posted in: Landlord: Trick of the Trade, NZPIF
IRD: Deductions you can and can't claim
posted Thursday, Aug 19, 2010
What you can claim
The following expenses can be deducted from your rental income:
rates and insurance
interest paid on money borrowed to finance your property
agents fees and commission relating to the rental of the property
repairs and maintenance (except if they substantially improve the property)
motor vehicle and travel expenses
legal fees for arranging the mortgage or finance to buy the property
from the 2010 income year and beyond legal fees for buying and selling a property c...
posted in: Inland Revenue Department , Property Investment Basics, Accounting, Taxation
IRD: How long do I need to hold the property to make it a capital gain?
posted Wednesday, Aug 18, 2010
There is no time limit. If you buy a property with the firm intention of resale, it does not matter how long you hold it - the gain on resale will be taxable (and any loss may be tax-deductible).
Example
You buy a property in a firm plan to resell it for profit. The property market falls and you decide to hold onto it instead. You rent it out for 15 years and then sell it when the prices are again rising rapidly. Any gain on that sale 15 years later is likely to be taxable.
Inland Re...
posted in: Capital Gains Tax , Capital Gain, Inland Revenue Department
IRD: If you are not clear on your intentions for buying a property
posted Wednesday, Aug 18, 2010
Make sure you read the IRD guide on Building and selling residential property.
If you are buying and selling property other than a private family home, we recommend you get advice from a tax advisor with expertise in this area.
posted in: Investor, Speculator or Dealer?, Property Dealing vs Property Investing , Inland Revenue Department , Tax status , Taxation
IRD: How many properties can I sell before it is considered taxable?
posted Wednesday, Aug 18, 2010
There is no set number of properties you can have before they become taxable. In some cases the first property bought and sold may be taxable if you bought it for resale. In other cases there could be a number of factors to take into consideration, such as having a regular pattern of buying and selling property, before a property is taxable.
The factors that may be looked at will vary because each tax payer's circumstances are different. For example, buying one property every two years may...
posted in: Capital Gain, Inland Revenue Department