Rental Property Tax

If you are thinking of buying a rental property as an investment you need a clear understanding of how the rental property business works and the tax implications involved. You need to make sound financial decisions and seek professional advice on having the right structures in place, including if you should have the property in your name, a trust or an LTC (Look Through Company).

Getting the most out of your Rental Property Investment

Forecasts are an important factor when investing in a residential property. They ensure you get the best return for your investment. Glenfield Tax Accountants provide help with forecasts on your property investment, revenue returns, financial position and potential growth, explained in an easy to understand manner. We work with people who want to make the most out of their rental property, maximising their profit.

 

Things You Need to Know about Rental Property Ownership

● Rental income has to be taxed the same year you receive it
● There are some expenses that you can claim for including maintenance & repairs and council rates & land tax
● There is no GST on residential rental property. However, if you own an investment apartment with a management agreement in place, there may be GST implications to consider
● If you decide to sell the property you may be liable for tax when you sell.

Income Tax on Rental Properties

The income you receive from your rental property is liable for income tax. This income can either be from renting out the property, land, buildings etc, or it could be income you receive from boarders or flatmates who reside with you.

Still unsure of your tax obligations? Call us for a free consultation.

Tax Deductions

There are certain expenses relating to maintaining and renting out your property that you are eligible to claim for. These may include:
● Interest payments and loan fees
● Council rates and land tax
● Advertising for tenants
● Depreciation of white ware and furniture
● Property inspection travel costs
● Maintenance, repairs, gardening, pest control

For more information on what you can claim for, give us a call. Capital Gains Tax There is no capital gains tax in New Zealand. However, if you were to sell the property for a profit, that profit is taxable. For a more in depth review on the above, please call us for a consultation.