Hi all intrepid Kiwi investors. Are you getting depreciation schedules done for your houses? Or just estimating the value of chattels and depreciating on that estimation? [saywhat]
CastleDreamer
Hi Castledreamer
I have had professional chattel evaluations done on all my properties by Valuit.
http://www.valuit.co.nzThey cost about NZ$360.
However there appear to be some changes in the wind by the IRD on chattel depreciations.
Regards
Ta Muppet
Cheers
CD!CastleDreamer
CD or Muppet
How does depreciation go on a cf+ IP? And how does it affect OZ investors in NZ?
Nu Gen
depreciation is basically a loss. it’s an on paper loss really, but it is deducted from your income so basically you ‘earned’ less. So less tax to pay. Also don’t forget that expenses from activities done to derive income (minus the personal component, of which there must be one otherwise the tax dept’s don’t go for it – according to my accountant!!) are ‘losses’ i.e. tax deductible.
So the quicker you start your ‘home-based business’ which is property investing, the better, I reckon.
But what about OZ investors in NZ. I on’t think they can claim deductions against their OZ income. Is this right??
Nu Gen
Nugen you are right, can’t claim the deductions against aussie income, you claim them against your kiwi income from your cf+ houses. this reduces the amount of taxable income you make on paper, so as mini said, you pay less tax, and take more money home! Yep still pay tax in australia, yep if you make a ‘loss’ in NZ then it stays there generally (some serious investors have spent money setting up structures to play with this – not what I have done)
cheers
CDCastleDreamer
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