News & Articles: Property Accounting

The first provisional tax payment is due on 28th August, this is either:

If 2024 tax returns have been filed, then based on 2024 plus 5%. If under the $5,000 Residual Income Tax (RIT) threshold for the 2024 year, then will be $0 [many property investors will have losses or low profit, and no provisional tax due!]

Otherwise based on 2023 plus 10%. If under the $5,000 Residual Income Tax (RIT) threshold for the 2023 year, then it will be $0.

As soon as we talk election or a new Government, I think of opportunity. The key thing is to wait until the new legislation is finalised. This won’t be for some months, but, we have a great opportunity to plan for the next few months and potentially make changes around the start of the new financial year.

When you invest in a new build or acquire another property that qualifies for specific exemptions, such as social housing developments, certain subdivision initiatives, or transforming a single house into two separate units, you unlock a significant financial advantage. This advantage lies in the ability to leverage a 100% interest deduction as part of your tax strategy. This deduction serves as a powerful tool for optimising your financial position by substantially reducing your taxable profits and consequently, your overall tax liability.

Unfortunately, it happens sometimes. Your business goes through a rough patch and before you know it, the business is behind on PAYE, GST and/or Income Tax. IRD then aggressively add penalties and interest, and the debt soars.

One of our clients was recently in this position, and this is how we resolved it.

Should your rentals be in a company, Trust, LTC, Partnership, Sole Trader, or something else?

This is a really common question, and there is no best structure for everyone. Everyone has a different situation, and a variety of structures can work best.