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Student Loan Annual Rates for 2015- 2016
Residential Rental Property Income and Expenses (Non Property Traders)
As copied from the IRD website
It's okay to do jobs for cash or for your mates as long as you record them and declare the income when you're filing your annual tax return. Make sure that:
If you're already paying tax on all your income, there's nothing more you need to do.
You have an important role in keeping your industry fair for all.
If you know someone who is doing undeclared cash jobs you can let us know confidentially.
If you've left some income off your tax return it's best to let us know now, rather than wait for us to find out some other way. By making a full voluntary disclosure you may benefit by:
Not being prosecuted in court.
Having your shortfall penalty reduced by up to 100%.
Choosing not to tell us may lead to:
late payment penalties
shortfall penalties, and
If you need help with correcting your tax returns, please contact your tax agent.
If you'd prefer to talk it through with us, you can make an appointment with one of our Community Compliance Officers - we'll even come to you if you prefer.
The annual review of student loan interest, repayment threshold and significant over-deduction rates has been completed. All rate changes take effect on 1 April 2015.
The interest rate applied to all student loans has decreased from 5.5% to 5.3%. Interest is applied to all student loans. If you're a New Zealand-based borrower, this is automatically written off.
The threshold for significant over-deduction has increased to $60 per pay period. A significant over-deduction can occur when the student loan deductions from your salary or wages in New Zealand are more than needed to meet your pay period repayment obligation.
The annual repayment threshold remains at $19,084 for income other than salary or wages. The pay period repayment threshold for salary or wages is $367 per week.
Repayment thresholds determine when you need to start repaying your student loan.
IRD have the statutory right to audit businesses to check if people are paying the correct amount of tax. The audit can cover income tax, GST and employer returns. After an audit you may be entitled to a refund or have tax to pay.
The different types of audits IRD do, how IRD select you for an audit and what it will involve.
Your rights (what you can expect from IRD) and what IRD require from you during an audit.
After the audit IRD will send you notices of Assessment and Statements showing if there is a refund or if there is tax to pay, and when it is due. The assessment will be issued after an agreed adjustment or notice of proposed adjustment (NOPA) has been worked out.
RESIDENTIAL RENTAL PROPERTY INCOME AND EXPENSES (NON PROPERTY TRADERS)
Generally, any income you receive from letting out property will be liable for income tax and must be included on an IR3 Income Tax Return. This income could be from letting out land or buildings, and in some circumstances, having flatmates or private boarders living with you, or caring for other peopleís children in your home.
that can be deducted from Rental Income
When you earn income from a rental property, there are often a number of expenses you incur. The following examples are examples you may be able to deduct from your rental income for tax purposes:
Interest- you can only claim interest on the mortgage taken out for the purchase of the rental property
Borrowing costs- associated legal fees as below , mortgage broker charges, finance institution bank charges to obtain the finance
Legal fees- you can claim legal fees incurred in arranging a mortgage to finance the rental property, arranging a tenancy agreement, collecting bad debts
Insurance- on property, furniture and effects, mortgage repayment
Motor vehicle and other travel
Letting agentís fees and commissions
Repairs and maintenance
Bank charges on rental bank account
Printing & Stationery
Landlord Association, Property Investors, related magazine subscriptions
Tenancy, Tribunal Court costs associated with tenancy dispute
Advertising for tenants
Heating and Cooling
Use of Home if you have a specific area associated with the rental business
any other relevant costs
expenses cannot be claimed for tax purposes.
For example, you cannot deduct capital or private expenses from
your rental income.
expenses are costs you incur to buy or increase the value of a capital
expenses are incurred for your own benefit, and are not connected with
producing taxable income.
of non deductible expenses are:
Selling the Property or Going to Live
in it Yourself
When you sell the property, or cease it as a rental and go to live in it yourself, there are depreciation recovery implications. That is, youmay have to declare back as income all depreciation previously claimed as an expense.
you claimed depreciation on buildings (in recent years this has not been
allowable) and if
you sell the property at a greater price than you paid for it, the
depreciation recovery will likely be the full amount of depreciation previously
claimed in respect.
it is for a lesser amount, you should obtain a valuation of the
depreciable assets on which you have previously claimed depreciation, and
compare this with the initial cost of these depreciable assets to
establish the depreciation recovery.
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