Yesterday IRD advised all Tax Agents that Inland Revenue is looking closely at real estate salesperson/agent customer groups.
There information suggests some of these customers are claiming private expenses and are not keeping logbooks or retaining other business records to support a deduction.
Real Estate has always been a high-risk industry with regards to this and I saw a few “interesting” cases when I worked there, not that I am ever allowed to disclose them, let’s just say there are some real estate agents that would never use.
What this means though, is that IRD will be sending letters to those Real Estate Agents (or their accountants) that they suspect of the above behaviours asking to provide proof of their expenses.
What does this mean for you? Well, if you are my client, do not be worried at all, if you are not and you do not have records, then its time to get on top of this before IRD comes knocking.
Because they will! I used to do it and know the drill .
The Minister of Finance, Hon Grant Robertson, has announced proposed changes for residential property acquired on or after 27 March 2021. The proposed changes include:
Some of these are huge proposals, especially for property investors, the standout part of this for me it the removal of being able to claim mortgage interest as an expense against the rental income, that is massive.
I don’t feel the bright line extension will make that much difference as those that are “flipping” properties usually do this within 6-12 months, so this one looks a bit empty unless I am missing something.
And the “tax to be paid on gains made for periods the property is not used as the owner’s main home” that’s going to be interesting from a compliance perspective.
Thoughts on this?
Applications for the Resurgence Support Payment (RSP) will open for eligible businesses and organisations 7 days after the alert level increase. Once applications open, they will remain open for one month after all of New Zealand returns to alert level 1. There are currently 2 periods for which applications can be submitted:
Alert level change 15 February - Applications are open. The last day for applications is 22 March 2021.
Alert level change 28 February - Applications are open.
More information can be found at:-