Patience is a virtue, but when it comes to property investment it’s more than that – it’s a strategy. Property is a long game, requiring foresight, resilience, and the ability to weather the storms of legislative uncertainty. At Vivid Accounting, we simplify the complexities of property tax, letting you relax knowing your investment is in capable hands.
Turning Property into Prosperity
Our Services
Stress-free tax returns
Navigating tax returns for rental properties can be daunting if it’s not your everyday business. With Vivid Accounting, this process is streamlined to cause minimal fuss. We make sure that you meet all your tax obligations, allowing you to focus more on your investments and less on the paperwork.
Preparing and filing tax returns with Inland Revenue
Preparing annual financial statements for trusts and companies
Fixed fee estimates for predictable cash flow management
Property tax advice
With a history of government changes leading to adjustments in property tax law, having a knowledgeable advisor is invaluable. We keep up to date on these changes and can give you strategic advice on how to best adapt your plans to stay compliant and optimise your investments.
Advice for bright-line test application
Tax structuring advice for building property portfolios, shared ownership property
Application of specific property tax rules for bachs, holiday homes and Airbnbs.
Commercial property and developers
Owning a property business has all the ups and downs of any business owner with the added complication of navigating specific land tax rules. We not only handle your regular business accounting and tax matters but also have our tax specialists ready to tackle any complicated land tax issues for you.
Prepare annual financial statements and file income tax returns
Tax and efficiency planning, group structure reviews
Application of land tax rules for subdivisions and land improvements
FAQs
I have a rental property, but I don’t make any money after paying for everything. Do I still need to file a tax return?
Yes, you’ll still need to file a tax return to let IRD know of your rental activity. If you’re operating at a loss, you’re able to carry forward those property losses and offset them against future property income.
Some costs may not be claimable for tax purposes, such as your mortgage principal payments or certain repairs and maintenance, so you might still have a tax bill to pay. We’ll make sure that you’re staying on the right side of IRD and that you’re able to claim all the right costs to keep you tax bill to a minimum.
I sold a property and I have to pay tax under the bright-line test. Are there expenses I can claim to reduce my tax bill?
Absolutely there are. Depending on your situation and the costs leading up the sale of the property, there’ll be expenses you can claim against your sale income. The easy ones would be things relating directly to the sale such as real estate agent selling fees, home staging costs, legal fees.
If the property was previously a rental, certain expenses are treated differently when the property is up for sale compared to when owned as a rental. In addition, if you have any carry forward property losses from running the rental, this can be used to offset and reduce your bright-line income. Get in touch with us and we’ll turn over every stone so you don’t miss out on any costs to claim.
Some years ago I helped my kids buy a house and now it’s being sold. Will we need to pay tax on this sale?
This is a “it depends” situation. It depends on the how the legal ownership of the property was set up. It also depends on the actions of each party during the ownership period such as if your kids lived in the property or if the property was completely used as a rental.
As this depends on your specific situation, we’ll be able to take a look and let you know the outcome for each group. If you plan on doing a similar set up again, we can provide advice ahead of time to make sure you’re getting the outcomes you want and that everyone knows what to expect when the time comes to sell.
I own property overseas and file my tax returns there. What do I need to do for tax in New Zealand?
At a minimum you’ll need to file a tax return with IRD to let them know of your rental property activity. If you’re paying tax overseas on the rental income, you’re able to claim a tax credit in your New Zealand tax return so you’re not getting double taxed. If you’re selling an overseas property, New Zealand has different property tax rules to most countries as we don’t have a specific capital gains tax system.
If you’ve recently moved to New Zealand, this can also change your tax return obligations. Get in touch and we can advise if you have any tax residency concessions available and help you file any tax returns you need.
