Category: Articles

Abolition of Gift duty – how will this affect your Trust?

Wednesday, 26 October, 2011 22:25 Written by Brad
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As of 1st of October 2011 gift duty been abolished by IRD in New Zealand. If you have a Family Trust this will have significant implications for you.

It has been standard practice in New Zealand for people to sell assets to their trust and have a debt back to themselves. Every year they would forgive $27,000 (the maximum amount without incurring gift duties prior to this recent change) this meant that if a couple owned a house worth $520,000 it would take 10 years of gifting $27,000 each to forgive the entire debt. Each year they would have to see their lawyers or accountant, complete paperwork and pay for the gifting to be done. Under the new regulations this gifting regime will no longer be neccesary – it is now possible to give an asset directly to the trust with no debt back as their is no longer any gift duty payable. This is great news for those of you with trusts as you will be able to gift one lump sum and will no longer have the hassle and expense of  on going gifting.

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A great new start or the same old, same old (or something in between)?

Friday, 01 April, 2011 16:54 Written by Brad
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Today the new tax changes come in for those of us still left in the rental property market.  It’s the start of a new financial year and it doesn’t feel so new anymore.  We are all in the throes of electing to change to LTCs, we know about the depreciation changes and we know that our rental property losses won’t have such an effect on our tax this year – but what about this year?  What is going to happen to the rental property market, particularly in Auckland where one of the biggest shows in town is going to arrive in a few months time?

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Getting the Taxation Fundamentals Right in Property Investment

Thursday, 16 December, 2010 13:02 Written by Brad
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The Tax Changes – are they making you worried about your future losses or is it back to fundamentals in property investment.

I would say that very few people enter the world of property investment thinking foremost about the way that they will benefit from being able to depreciate assets and thereby gain an annual tax rebate.

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What Tax do I have to pay if I’m Selling a Property for Profit?

Thursday, 16 December, 2010 13:02 Written by Brad
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If you sell your family home and are lucky enough to make a good profit to help with the purchase of your next family home – don’t worry about it – if it’s all straight up and uncomplicated and the time factor is reasonable and you are doing what you say you are doing the IRD won’t be interested as the profits from the sale of a family home are generally not taxable.  You will need to declare it on an IR3 – as an individual tax return and tell the IRD what you are doing and how all the figures are worked out.

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How Xero can help with managing your Rental property

Wednesday, 01 December, 2010 13:27 Written by Brad
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Monitoring financials and keeping track of rent payments coming in are aspects of rental property ownership which landlords often struggle with. With all the changes to rental property taxation like depreciation and the LAQC changes and new LTC’s it will be more important than ever to keep on top of the financials and budgets to make sure you have sufficient cash flow and plan for taxes before the end of the financial year. The reason landlords and property investors often struggle with this area is that they do not have an adequate system in place. Xero is an ideal solution for property investors whether they are small scale investors with only one or two properties or have large investment portfolios.

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