Ask Mark Withers, director of Withers Tsang & Co questions relating to Tax and Asset Structures
Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.
We are in the business of renting out properties. We have seven rentals but we are now selling one rental (that we have owned for 16 years) to buy two units with a better yield. Are the real estate sale fees for the sale of the one rental property claimable as an expense?
My husband and I currently own investment properties jointly. We are looking to change the ownership structure to “tenants in common” (for the purpose of our wills). Would the change to tenants in common trigger the bright line test and, therefore, a tax liability?
I painted my shared fence from my side with a different color in my backyard and neighbor has alleged that there were some paint dropped over to his side. He wants me to pay the whole cost to get a third party professional painter to repaint his side. I do not think it is reasonable.
This is a 22 year old fence which has had no maintenance ever. The standard fence depreciation rate from IRD is 10%, that means it should be depreciated more than 80% from its original paint cost. May I please have your opinion on this case?