Tax Effective Structuring:
Residential and commercial rental property ownership is a popular form of investment for Kiwi’s. However, the tax law relating to property investments is complicated. The correct ownership structure is critical if full benefits are to be achieved. Professional advice should always be obtained prior to purchasing a rental property. This advice should cover such matters as the ownership structure and tax effective financing options. There are many issues to consider and if this isn’t done correctly, it can be costly to make changes down the track.
We’ll help you to work out if the property is affordable, and if so, advise on the most appropriate ownership structure and financing options to maximise the benefits to you.
We’ll provide financial reports to help you understand the financial performance of your property. The complexity of these reports is dependent on the property’s ownership structure and your requirements. Properties can be owned by individuals, companies, trusts or partnerships, and the financial reporting can vary for each.
Income from rental properties is not surprisingly, subject to income tax. And the tax law in this area has been the subject of significant change in recent years. Our experienced Chartered Accountants will provide the help you need to ensure you’re complying with tax law and paying the correct amount of tax.
Overseas rental properties are often exposed to additional tax issues, and professional advice should always be sought prior to purchase.
Owners of commercial rental properties may also need to be registered for, and account for, GST (Goods and Services Tax). These properties are likely to be owned through a Company or Trust. We can advise on the appropriate ownership structure, and ensure you’re complying with your ongoing income tax and GST responsibilities.