The first of October is only days away and (apart from the usual pinch-and-a-punch) things are about to get a whole lot uglier if you buy and sell property regularly. We won’t bore you with the new legislation, which is mind bending and best left to Chartered Accountants, but practically speaking there’s a couple of smart things worth knowing:
If you’re new to the rental property game then here’s some invaluable tips to get you started on the right foot, get the most tax back and keep your accounting bills down:
You know that Mr Ed tune about “a Horse is a Horse of course of course”? Well I have a similar version which goes “a Loss is a Loss of course of course (unless there’s a whopping great capital gain)”. It comes in particularly handy when I’m cornered by some Bozo who’s droning on about how clever he is at making losses and never paying tax. Continue reading A loss is a loss of course of course
The simple truth is that you’re unlikely to know if your accountants any good unless you’re able to have a good ‘poke-around-under-the-hood’ with someone who knows what they’re doing. There can be all sorts of nasties going on behind the scenes putting you at risk and unless you’re an expert you’ll be none the wiser. Behind the scenes in the accounting world means the hundreds of pages that a good accountant prepares, to check and verify your accounts, even though you’ll only ever see a handful of them. Continue reading Good accountants in auckland?
Here’s a nice simple once-over to clarify all the media fuss surrounding the changes to rental property depreciation. Essentially, from 1 April 2011, you can no longer claim building depreciation but thankfully you’re still able to claim depreciation on chattels. This is a plus because chattels, such as carpet and curtains, generally have a far higher depreciation rate. And although losing the building claim may seem a little rough it’s generally only a question of timing because the building depreciation claim is often reversed when you sell the property for more than it originally cost you. Continue reading Bye Bye building depreciation