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311 posts

Ultimate Geek


# 136648 4-Dec-2013 15:36
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Hi,

Could you please point me to some resources that I can read before seeing an accountant? I want to do a bit of homework to have all questions ready.

I plan on buying it under my name (eg, not a trust or a company) and in this situation, are any tax deductions available?
The main questions would be, for example, the interest paid will be higher than the rent, is the difference claimable from my annual income as a loss?
Also, are there any thresholds on the claimable tax for any expenses (repairs etc)?

Thank you.

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Mad Scientist
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  # 945431 4-Dec-2013 15:40
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Involuntary autocorrect in operation on mobile device. Apologies in advance.




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Ultimate Geek


  # 945434 4-Dec-2013 15:46
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Exactly what I was after, thank you (not sure how I didn't think it should be on IRD's website) :)

 
 
 
 


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  # 945454 4-Dec-2013 16:06
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If you buy it under your name there is less paperwork/accounting than if you set up a company.

There is no practical difference in the deductions you can claim either way.

It is best if you get advice from a specialist property accountant before you even make an offer on an investment property as to fix things up later can be quite expensive.

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  # 945469 4-Dec-2013 16:11
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Have a look at a LAQC - loss attributed qualifying company. Probably not applicable if you're buying under your name though.

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  # 945472 4-Dec-2013 16:21
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timmmay: Have a look at a LAQC - loss attributed qualifying company. Probably not applicable if you're buying under your name though.


LAQC's were more or less canned in 2010 precisely because of moaning about landlords using them! Very annoying as they were great for other things.





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Ultimate Geek


  # 945499 4-Dec-2013 16:52
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Also it would pay you to be aware of Labour party policy and what they are saying the will do if elected next year. I haven't had a good look but there was talk of ring fencing  losses and capitol gains taxes.

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  # 945501 4-Dec-2013 16:56
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You can't put a price on good advice, and a good accountant is worth their weight in gold.

My recommendation would be go see one, you'd only need an hour of their time, and it really is money very well spent.

 
 
 
 


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Ultimate Geek


  # 945555 4-Dec-2013 18:41
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timmmay: Have a look at a LAQC - loss attributed qualifying company. Probably not applicable if you're buying under your name though.

new kid in town is LTC, look through company, pretty much works the same way as far as loss attributing is concerned.

check valuit, any property accountant would recommend you get get a valuation on chattels (if they don't be careful), you can still claim depreciation on chattels, but not on buildings. 

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  # 945560 4-Dec-2013 18:54
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I have a couple of questions , some of you might be able to help

- do you think a property manager is worth it ? some were i did read that property managers have like 80+ homes at any point of time, so for them ur house is just another house, and it will get a "generic" attention ? whats ur views

- n secondly, if i manage it myself, how much of the vehicle n maintenance costs can i claim. the ird site doesnt give me a limit or something like a threshold ?

thanks,

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  # 945704 4-Dec-2013 21:47
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sep11guy: I have a couple of questions , some of you might be able to help

- do you think a property manager is worth it ? some were i did read that property managers have like 80+ homes at any point of time, so for them ur house is just another house, and it will get a "generic" attention ? whats ur views

- n secondly, if i manage it myself, how much of the vehicle n maintenance costs can i claim. the ird site doesnt give me a limit or something like a threshold ?

thanks,

- depends, if low maintenance manage yourself. a good manager would be a must if your have many properties, or regularly away or occupied, or have short term tenants, or value ur time more than 7~10% of the rent.

- up to 25% vehicle costs if u don't keep a log, if you do then the actual mileage share of total mileage. all maintenance costs as long as they don't significantly improves the house (i.e. a new tap is ok but not a new bathroom), your own time can't be claimed.

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  # 945798 5-Dec-2013 00:51
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if you do buy a prooperty, make sure you get the right insurance. i'm using neal sadgrove for my policies which are underwritten by NZI.

also make sure you understand when you are covered, and are not covered. For example: if my tenant turns the house into a P lab, i'm covered - but only if i've been carrying out 3-monthly inspections (i.e. not 6-mth or 1-yr).




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