Budget 2018 – key points

A strong and growing economy is the real story behind the Coalition Government’s 2018 Budget. This is very evident from the Time Series of Fiscal and Economic Indicators which projects Gross Domestic Product (GDP) to grow $17 billion in the... Read more

Property switchers

Politicians have been giving residential landlords a hard time. It’s no surprise that some are switching to more benign investments, like commercial property. The April issue of New Zealand Property Investor magazine interviewed three... Read more

Bright line test and discrimination

Last week the Revenue Minister Stuart Nash made good on Labour’s promise to extend the current two-year bright line rule to five years. The change will come into effect once the Tax Bill before Parliament is given the Royal Assent, which is... Read more

Holiday homes

A recent news report from Stuff had some interesting facts and figures about bachs and coastal property. In the Far North, estimates the median value of for all properties in the region to be about $370,000 . But within 100 metres of the... Read more

Tax loopholes

Last week the government announced its “final decisions on proposals to address base erosion and profit shifting” – in other words, closing loopholes on international tax dodgers. The announcement was made without a lot of... Read more

Budget 2017

The National Government has produced a measured and politically clever Budget. Where this budget differs from its previous budgets is that it has opened its wallet and distributed the benefits of eight years of conservative management and the... Read more

Land banking and tax

There has been a great deal of attention given to Auckland’s Unitary Plan. For some landowners, that will be good news financially as the value of their property rises to reflect a more intensive economic use. There may however be a tax... Read more

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

Foreign trusts and the two year test

The Shewan report into foreign trusts was tabled at the end of last month. As expected, it found the disclosure laws relating to foreign trusts were “inadequate”. It said, “The rules are not fit for purpose in the context of... 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