Description

Putting the rules into practice

We are continuing to see an increase in the number of people who had never let a room or their “bach” as short stay accommodation in the past are starting to do so to help cover the costs of inflation.

Anyone who deals with clients that let property (including a room in their own home) on a short stay accommodation basis, whether through Bachcare or otherwise, will benefit from this practical focused course that will look at examples of how the rules apply in varying situations.

We will work through how the rules apply in practice using common scenarios to illustrate the calculations and the impact of the apportionments and limitations including but not limited to:

• Interest deductibility for 2024, 2025 and beyond;
• Residential loss ring fencing and what it means for short stay rental property owners;
• Mixed-use asset limitations/apportionments and quarantining of expenditure;
• Fit out claims under the new s DB 65B;
• Deductibility of holding costs if a sale is taxable;
• The income tax impact of the GST marketplace rules;
• Income tax treatment when a property is being renovated.

We will work through scenarios that we all see on a regular basis and work through the implications of the income tax rules. While working through the various scenarios, we will focus on the practical outcomes and considerations. 

ORIGINAL BROADCAST DATE 

27 August 2024

LEARNING OUTCOMES 

Upon satisfactory completion of this webinar, you will:

Have a better understanding of the income tax issues facing clients that let property as short stay accommodation, including:

• How income tax rules practically apply;
• How the Mixed-Use Assets rules apply; and
• The income tax implications of different ownership options.

• Gain an understanding of the issues arising from income tax changes, including bright-line, interest deductibility and commercial depreciation and what it all means in real terms.
• Be able to guide your clients through the various issues and competing objectives that they will have and face when letting property as short stay accommodation.

SUITED TO 

This course will be suitable for all accounting and legal practitioners that have clients letting through Bachcare and the like, as well as real estate agents and property letting managers.

PRESENTER

Daniel Gibbons, Partner- Tax Advisory, Findex on behalf of TEO 

Daniel is a Partner for Findex in Queenstown. Daniel has been with Findex for 16 years, where he advises on a wide range of tax matters, including property transactions and property ownership structures, international taxation issues, the tax treatment of investments and providing structuring advice to clients, including assistance for family group restructures. Daniel is recognised as a leader in the taxation treatment of short stay accommodation, providing training to other practitioners.