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Rental property tax NZ Herald opinion piece

As Property Managers we sometimes get asked about rental property tax, and ways to avoid it.  Owners often view tax as a bad thing, really tax is an indication of profit, which is not a bad thing (not to mention tax is re-invested in your economy).  There are many ways to reduce your tax, like investing in maintaining (repairs and maintenance, not improvement) certain aspects of your rental property, hiring a Property Manager to take care of your property (since the GST on a Property Managers fees are deductible, as are any advertising costs of available property for rent), borrowing more and investing in a second property etc.

Depending on your investment strategy, if your paying tax and would rather not, I suggest taking stock of your rental properties condition, If you're a long term investor then keeping your property weather tight, and well maintained (therefore more attractive to quality tenants,) should be a priority.  Also consider the implications of a future NZ rental property WOF scheme, would your property meet the code?

Here is a short NZ herald opinion piece you may be interested in:

Mary Holm: It's okay to pay tax on rental property

Here is the IRDs page about Property tax whats deductible and whats not:

IRD property tax

(As always, a good Accountant is advisable!)

Warrant-of-fitness trial kicks off



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