Tax matters: P lab repair costs

Are costs incurred to repair damage to a rental property from use as a P lab tax deductible? The answer is not as straight forward as one may think. Here are some key points. If the repair cost is covered by insurance then any compensation received... Read more

Tax tips – The bright-line rule – defining the start and end of the two-year period

The bright-line rule only applies to residential properties bought on or after 1 October 2015, but exactly what is the purchase and sales dates is causing some confusion. Under this rule taxpayers pay tax on the gain in resale value of a property... Read more

Tax matters

On 17 September Stuff reported on the conviction of Christchurch property developer, David Henderson, on seven charges of tax fraud. The case is a useful reminder for business owners. Here are some of the key points from the article: The charges... Read more

Two-year residential property tax rule

  Core Logic has provided some interesting figures in response to the governments new to-year tax rule for property investors (see last week’s Property Plus). “There is a definite difference in hold period between Auckland and the... Read more

Capital gains tax a hot election topic

Tax is one of the dominant themes of the election campaign. Both Labour and the Greens favour the introduction of a capital gains tax. Here are some of the critical details as we understand them from the Labour Party website: Rate: The CGT will be... Read more

Smart tax tips – July

There are a couple of recent matters that are likely to be of interest to clients. The long arm of the IRD The IRD is clarifying the meaning of ‘excessive remuneration’ and ‘excessive profits or losses’ paid or allocated to... Read more

Smart Tax Tips – black holes

Q: What does outer space have in common with income tax? A: Black holes! Expenditure is said to be ‘black hole’ when it is not only not deductible for tax purposes but is also not considered to be expenditure on a depreciable asset and... Read more

Abode matters

We are certainly noticing many more of our clients doing business offshore and that often involves the New Zealand taxpayer spending more time overseas and tax complications regarding residency. A recent ruling by the Taxation Review Authority (TRA)... Read more

Yes it will happen – a Tax Audit

Unfortunately being in business means being subject to the scrutiny of the Tax Department from time to time. To some, it is quite unfair that not only are businesses the unpaid tax collection agency for central government but there is a presumption... Read more

Taxing matters & 50 shades of grey

Capital gains tax. Yes, there is a capital gains tax on property investments! It’s a misconception to think that property transactions are exempt from tax on capital gains. The Income Tax Act has a number of provisions that catch gains derived... Read more