What info do I need to give IRD for tax returns?

Question from donna updated on 14th November 2008:

I have had a rental property since 2000 and have made no tax claims on them. I wondered, if I do go to IRD, what info I need to provide them with and how far back I could claim if I can claim? Rent received never covered all of the mortgage or the rates and insurances.

Our expert responded:

The fact that you have not made any money on your rental property is irrelevant.  You are required to file a tax return with your rental income.  Also, if the rental income did not cover the cash expenses of the property, you have missed out on being able to offset that loss against your personal income, assuming you own the property in your personal name.  My advice would be to get yourself off to an accountant quick smart who can then go back and do your accounts from when you purchased the property back in 2000.

Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth.  She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.




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