As Tax Season begins for the 2016 year, it’s now time to start thinking about getting your rental property accounting and tax obligations sorted.
Below are some simple tips which will help you get sorted for tax time.
1. Start Thinking About Tax Now
It is best to start planning for tax early. If you are unsure about what you are required to do to comply with your tax obligations for the 2016 tax year talk to us now. As a Property Tax Return’s client you are entitled to unlimited tax advice and assistance with your rental property tax obligations.
2. Understand What Expenses You Can Claim
It is important to know what expenses you can claim against your rental property income and what you cannot. We have published a brief list of what you can and cannot claim here.
It is important to remember that you will need to be able to produce invoices or receipts to support any expense claims made.
As always, if you have any questions about what you can and cannot claim, please contact us and we would be happy to point you in the right direction.
3. New Bright-Line Rules
From 1 October 2015 the new Taxation (Bright-Line Test for Residential Land) Act 2015 applies to land transactions within New Zealand.
These rules introduce a number of additional compliance obligations for people who purchase and sell properties in New Zealand. For more information on the new rules, please visit the IRD website here.
Please let us know if you have sold a property in the last financial year or intend on purchasing one in this financial year so that we can advise you correctly.
4. Get Your Records In Order
Taking time to get your records in order will help you determine what your tax obligations in relation to your rental property may look like and can also act as catalyst to chase up any other rental property matters you may have to deal with.
Providing good accurate information to us will ensure that we can complete your rental property accounting obligations quickly and get any refund owed to you from Inland Revenue into your bank account faster.
We are property taxation experts, contact us for a no obligation discussion about how we can help you meet your rental property tax obligations as part of our fixed fee service.