Current Category: Accounting
IRD: Deductions you can and can't claim
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
The 2010 Budget and Property Investors
The much anticipated 2010 budget was released yesterday and as expected there were a number of tax reforms affecting property investors. On the upside the reduction in personal tax rates from 1 October 2010 will benefit all of us and put more money in our pockets. The top personal tax rate will reduce from 38% to 33%, meaning the tax incentive to divest income from yourself personally to a trust has been removed. It will also mean that any rental losses offset against personal income will ...
posted in: Capital Gains Tax , Budget 2010, Governmental & Regulatory, Depreciation, Accounting, Taxation, LAQC, GST
New Zealand’s 2010 Budget – biggest tax reform in 25 years
Finance Minister Bill English (National Party) has just revealed the Government’s 2010 Budget. It proposes a number of changes, including the biggest tax reforms since GST was first introduced and other tax rates slashed 25 years ago (under the Labour Party). These were designed to make the tax system fairer, lift income levels and address long standing economic weaknesses. Bill English stated:
It continues the Government’s focus on getting long-term, sustainable growth and shifting the ...
posted in: Finance, Governmental & Regulatory, Depreciation, Personal Income Tax Cuts , Accounting, Taxation, LAQC, GST
3 Bullets dodged but there is still a round in the breach!
Withers Tsang on Tax
John Key's statement to Parliament has sent a relatively clear signal of his intentions in their drive to overhaul the tax system.
He confirms that specific measures will be announced in the May budget.
Specific announcements for now include:
Confirmation that personal tax cuts will be across the board;
Changes to property tax will be made but many of the dreaded suggestions put forward by the Tax Working Group are 'off the table'. These include: land tax, a co...
posted in: Finance, Accounting, Taxation
How much will the proposed tax changes actually affect you?
Withers Tsang on Tax
Following the release of the tax working groups report into the potential tax changes, many clients are understandably worried about the specific impact that proposed changes will have on their personal positions. Before you look to make wholesale changes to your affairs, be they to buy or to sell, you should look to quantify the specific impact of the changes that are being proposed as they relate to your personal circumstances. An understanding of the actual impac...
posted in: Finance, Accounting, Taxation
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