Tax/GST/LTC Expert

Gifting expenses?

Adi asks:

I was just wondering what sort of property expenses you need to state when gifting as these will increase the amount to forgive.

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Part ownership deductibility?

Gerry asks:

We currently own a rental property in a look through company (LTC). My parents are looking to buy into the property and to live in it. As they will not be able to pay the full market value we will be left with a mortgage. Once they no longer live there then we intend to rent the property again. Let's assume they have enough to purchase 75% of the property. Will our 25% portion of expenses be deductible even though there will no longer be any rental income?

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Pay off NZ debt?

Wendy asks:

Should we re-mortgage our UK property to pay off our NZ debt on our family trust? Cashflow wise it makes sense as our UK property is making a profit. We could re-mortgage and have the UK rental income cover the increased mortgage and expenses. We are declaring the UK income here and pay tax to NZ IRD. If we re-mortgaged we would be paying less tax as we would be making less profit. Bringing the money across enables us to pay a chunk of our NZ mortgage held by our family trust. Then repayments could be changed from interest only to table repayment loan for the same repayment amount. Can you please explain the tax implications of doing this? I was told that the interest on the additional sum of money we borrow could not be tax deductible on the UK rental income.

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