SearchNo return filed - "should I expect a big tax bill"?
Hamish asks:
(updated on Saturday, September 07th 2013)
I bought a property two years ago and have been renting it out (I've never lived in it). It runs at a slight loss but I haven't done a tax return during this time. Am I breaking any sort of law? Should I expect a big tax bill? What should I do about it? Please forgive my ignorance and offer me some advice.
Our Experts Answer:
Yes NZ income tax law requires you to file an IR3 income tax return that should include a statement of gross rent earned less expenditure. If there is a loss from the renting they probably owe you a refund. If there is tax due on a profit there will be late payment penalties and interest. I suggest you assemble your papers and engage an accountant to produce the rental statement and file your tax return asap.
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