A commonly held, but incorrect, belief is that rental property owners in New Zealand don't pay tax. This causes confusion for the general public and may lead first time landlords to have wrong information on their tax obligations.
Because of this, the NZ Property Investors' Federation (NZPIF) supports the Inland Revenue's initiative to increase awareness of new rental property owner’s tax obligations.
"Most investors operate on a part time basis and won't be up-to-date on their tax obligations" says NZPIF Executive Officer, Andrew King. "Property Investor Associations around the country provide excellent information on all aspects of how to run a rental property, but tax is important so any additional information is a good thing. The NZPIF would also encourage new landlords to seek tax advice from a chartered accountant who has experience in property investment matters."
In addition to rental property owners underestimating their tax obligations and getting a nasty surprise, many may not know what expenses they can claim and could pay too much tax.
Existing and new landlords can find all they need to know and ensure they are paying their fair share of tax by visiting Inland Revenue’s website, www.ird.govt.nz and www.nzpif.org.nz.