Which capital gains are tax free?

Which capital gains are tax free?

New Zealand does not have a capital gains tax. However, some capital gains are taxable. These include the gains made on some property sales, and sometimes on the sale of shares and other assets. Rather than listing which gains are taxable, it’s simpler to tell you...
Rental tax changes are about to kick in – be ready

Rental tax changes are about to kick in – be ready

Earlier this year, the Government announced the removal of tax deductions on loan interest for rental properties. Previously, interest payments could be claimed as a business expense and taxed accordingly, giving property investment a tax advantage. Now, properties...
Residential Property – the bright-line test and tax

Residential Property – the bright-line test and tax

Property investors come in all shapes and sizes, from large scale professional operations and developers to so-called ‘Mum and Dad’ investors who wanted to save for their retirement with something they could feel was literally safe as houses. Changes to tax rules for...
Property and Tax update

Property and Tax update

On 23 March 2021, changes to tax rules for investment properties took investors by surprise. There has been widespread commentary with more to come as the detail unfolds. In overview: The bright-line test has been extended from 5 to 10 years for properties purchased...
Provisional Tax – how does it work?

Provisional Tax – how does it work?

If you had to pay tax of more than $5,000 in your last income tax return, you may have to pay provisional tax for the following year. Provisional tax is like paying progress payments on next year’s income tax. The amount you have to pay relates to your expected profit...
The 39% tax rate – Your questions answered

The 39% tax rate – Your questions answered

New Zealanders earning over $180,000 a year will now pay a 39% tax rate, which came into effect on 1 April 2021. If this includes you, are you aware of how your tax obligations change when it comes to shares, property, FBT, superannuation tax, or trusts? The 39% tax...