As many of you may be aware, there are some changes coming in on 1st November effecting the way that capital gains on rental properties are taxed.
It's important to remember that these changes are not targeted at owner occupied homes and will specifically be targeted at investors selling properties in this time. However there are a number of grey areas that the average investor can't be expected to fully understand right away.
That's why we've got some advice on these changes below from our specialist Property Accountant, Ross Barnett from Coombesmith.
Restructures
Are you looking at putting your rentals into a Trust or LTC?
Under the current Issues paper and draft legislation, there is no relief for restructures
Does the rule apply to existing properties?
Only applies to property settled/purchased after 1 October 2015.
So if you have an existing rental, it will not be affected by new rules, unless you restructure it
How is the main home exclusion measured?
Must be "used predominantly, for most of the time that the person has owned the property, as their main home".
To get a better understanding of the rule changes you can access an excellent piece written by Ross by simply clicking this link.
If you are an existing client of New Zealand Advice Group then watch out for special deals on investment property accounting options in the next couple of months.
We're to help with all of your Home Loan and Risk Protection options when purchasing a new rental property so get in touch and we can negotiate a great deal and give you a structure that fits your situation perfectly. Along with recommending experts in other fields to ensure you have the best overall service.
Click the link above to send us an email or give us a call to discuss
We look forward to hearing from you soon
Adam, Reagan and the NZ Advice Group Team
It's important to remember that these changes are not targeted at owner occupied homes and will specifically be targeted at investors selling properties in this time. However there are a number of grey areas that the average investor can't be expected to fully understand right away.
That's why we've got some advice on these changes below from our specialist Property Accountant, Ross Barnett from Coombesmith.
Restructures
Are you looking at putting your rentals into a Trust or LTC?
Under the current Issues paper and draft legislation, there is no relief for restructures
Does the rule apply to existing properties?
Only applies to property settled/purchased after 1 October 2015.
So if you have an existing rental, it will not be affected by new rules, unless you restructure it
How is the main home exclusion measured?
Must be "used predominantly, for most of the time that the person has owned the property, as their main home".
To get a better understanding of the rule changes you can access an excellent piece written by Ross by simply clicking this link.
If you are an existing client of New Zealand Advice Group then watch out for special deals on investment property accounting options in the next couple of months.
We're to help with all of your Home Loan and Risk Protection options when purchasing a new rental property so get in touch and we can negotiate a great deal and give you a structure that fits your situation perfectly. Along with recommending experts in other fields to ensure you have the best overall service.
Click the link above to send us an email or give us a call to discuss
We look forward to hearing from you soon
Adam, Reagan and the NZ Advice Group Team