21 Residential Property Tax Changes - Brightline Test and Interest Deductibility (Webinar Recording)

Prices NZD & excl. GST - Broadcast Date: 29 April 2021

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Product Description

On 23 March the government announced new tax rules that will greatly impact residential property, most notably:

  • The bright-line test being extended to 10 years; and
  • The ability to claim interest deductions as an expense against rental income is being removed

In this course, we will outline the changes and provide practical examples of how these might impact those who own residential property.


Upon satisfactory completion of this activity you will be able to know/understand:


Bright-line Test


  • How the 10 year bright-line test will apply, including:
    • What properties will be affected and from when
    • How “New builds” will be treated
    • How the “main home” exemption will apply given change to 100% main home, including:
      • What happens when there is a change in use during ownership period
      • How the 12-month buffer rule will apply
      • Impact on short-term rental properties given change to what can be considered a “business premises”
      • How the 5-year rule will still apply

 

Interest Deductibility

 

  • What property will this apply to?
  • How the interest deductibility criteria as proposed will apply, including:
    • distinction between new and old property
    • Timing of loss of deduction including the 4-year phase out of deduction
    • Impact on “new builds”
    • Potential issues that might arise with the timing of lending and what it is being used for, such as if new borrowing is obtained for a property
    • Treatment if use residential property as collateral for lending.

 

Pattern of Buying and Selling

 

  • An overview of the changes to land tax exclusions when there is a regular pattern of acquiring and disposing of property by a group of persons.

 

Total CPD Hours: 1.25 (1 hour + 15 min. Q&A)


Suited to:
The course will be suited to all levels of accountants, corporate professionals, public practice – law and accounting, general business advisors.

 

PRESENTER

Daniel Gibbons, Partner, Findex/Crowe

Daniel is a Partner for Findex in Queenstown.  Daniel has been with Findex for 13 years, where he advises on a wide range of tax matters, including property transactions and property ownership structures, international taxation issues, the tax treatment of investments and providing structuring advice to clients, including assistance for family group restructures.  Daniel is recognised as a leader in the taxation treatment of short stay accommodation, providing training to other practitioners.