Property Investors - Use a Rental Property

Accountant To Lower Your Tax Bill

Rental property needs careful tax management

and reporting to avoid penalties.

Do you rely on investment property for your retirement?

Plenty of people in New Zealand have invested in rental property for various reasons. For some it is to fund their retirement years, for other it is a business which provides their living while others use rental property as a means to provide for their children's university education.


Whatever your reason for investing in property, you need to make sure that your investments are safe and that they are fully up-to-date with tax obligations.  If you do not have properly established ownership vehicles you may be in for a nasty surprise.


There are lots of different ways you can own, control or manage rental properties but that gives rise to plenty of opportunities for mistakes that the IRD is increasingly chasing after. It is essential that you are set up correctly otherwise you could discover that your investments do not provide enough income for your pension or you are paying too much tax.


So before you sign an agreement with a real estate agent you should speak to a property accountant about property investing.


Too many real estate experts

Kiwis have a love affair with rental property investment.  This has led to thousands of "expert advisors" wherever you look. Any party, bar or business meeting, someone will be keen to give you their expert knowledge about how you can make a secure fortune in property.


However, everybody has different circumstances so what may have worked for your "advisor" may not be the best option for you.  On top of that, there are regular changes to tax laws and regulations which your "expert" may not be aware of.


Real estate can certainly provide a handsome return but do not rely on the man in the bar to give you the best advice.  Investment property is not cheap and if it goes wrong, it can cost you a lot of money so talk to a real property tax expert.


Recent tax changes affect property investors – are you breaking the law?

Many people are familiar with the old LAQC as a way of owning rental investments. But this was abused by many property investors so in 2011 the IRD made significant amendments to property ownership rules.


A new method of investment was launched known as a Look Through Company (LTC). Property investors can use this method but again an LTC is not appropriate for everyone; it depends on your own financial circumstances and objectives.  


But as with all tax laws, an LTC is not simple. There are regulations you must follow to avoid challenges from the tax office and potential penalties. 


At Tyler & Associates, we undertake tax planning and income tax reporting for both residential and commercial property investors.  Among the services we provide are:- 


·         Advice on how to structure investment property ownership

·         Ways to fund your property investment

·         How to minimise your tax

·         Completing annual tax assessments and income tax returns


Take a tip from professional property investors , use accountants

It is safe to assume that commercial and professional residential property investors know a lot about property investment. They always use an accountant for accountancy advice with their investment portfolios. Does it make sense for you to take a tip from them?


To ensure the ownership of your real estate investments is correctly set up and that you minimise your tax liabilities, call us on 444 9004 or email us at for an initial free consultation.





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