Property
Leaky home repairs concluded as not deductible
The leaky homes crisis represents one of the most severe problems faced by New Zealand’s property sector and continues to cause stress and anxiety for those affected.
Holding Costs for Land
The IRD has released a draft interpretation statement addressing the deductibility of land holding costs – namely, interest, rates and insurance.
Flooding Events Tax Concessions
A number of tax concessions were released in an attempt to provide some relief to those who were impacted.
Is a subdivision subject to income tax and GST?
When determining whether a gain on disposal of land is subject to income tax, various land taxing provisions must be considered.
Residential property – a class of its own
The tax treatment of residential rental investments has become a tangled web of complexity due to changes in legislation over the past few years.
Update – GST on Farmhouses and Holiday Homes
In 2017 Inland Revenue released an Interpretation Statement, IS 17/02, which formalised the long-standing practice of allowing a farmer to claim a portion of their farmhouse expenditure on the basis it is the “headquarters” of the farm. But then in 2020 Interpretation Statement IS 20/05 was released by Inland Revenue which overthrew the common practice … Read more
Is it a ‘New Build’?
On 30 March 2022, the Taxation (Annual Rates for 2021-22, GST and Remedial Matters) Act 2022 received Royal assent. Its passing into law brings with it the extension of the residential bright line period from 5 to 10 years and denial of interest deductibility for residential investment properties. The legislation itself is complex and difficult … Read more
Clarity for property investors
In March 2021 the Government announced changes to the bright-line test and interest deductibility for residential properties. Following the release of a discussion document in June, there has still been significant uncertainty regarding the specific details of how the new rules will apply. However, the government has now provided clarity through the release of draft … Read more
