Property Accountants NZ Limited is started by a CPA credited Accounting and Advisory firm - Kinghans Limited.
We provide business advice, property advise and all the latest news/updates including tax news related to all properties in NZ. We can assist you at all levels of property advisory and accounting.
All tagged Ring Fencing
The new ring-fencing rules apply to residential land - mainly residential rental properties. This includes overseas property held by a New Zealand tax resident.
The rules generally apply no matter how the property is held. The rules apply to property owned by you or a partnership, a look-through company, a trust, or a close company.
If you have a tailored tax code and rental income, the new ring-fencing rules may affect you.
From the 2019-20 income year new ring-fencing rules apply to residential property deductions. Ring-fencing means residential property deductions can only be used to offset income from residential property. You cannot use rental losses to offset other income like salary and wages.
Under the rules, you can only claim deductions up to the amount of income you earn from the property for the year.
You must carry forward deductions over that amount. You can use these deductions to offset your rental income in future income years.
