21 Residential Property Tax Changes – Interest Deduction Limitation Guidance (Webinar Recording)

Prices NZD & excl. GST - Broadcast Date: 22 July 2021

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Product Description

Following the 23 March Property tax changes, the IRD has recently released their consultation documentation on how the design of the interest deductibility limitation rule might apply and some proposed changes to the bright-line rules. 

 

The key feature of the consultation document is how the interest deductibility limitation on residential properties might apply.  It also includes:

 

  • New builds – what might be considered a new build for the interest deductibility limitation and the bright-line rule
  • Bright-line changes – including a concept for roll-over relief and how main home exemption will apply for new builds
  • Impact on ring-fencing rules and mixed-use asset rules

 

In this course, we will outline the key proposals of the consultation paper and provide practical examples of how these might impact those who own residential property.

 

Upon satisfactory completion of this activity you will be able to know/understand:

 

Interest deductibility

  • An overview of how the limitation on interest deductibility is proposed to apply
  • Outline who would be subject to the limitation, including what kind of properties and entities
  • How the “developer” and “new build” exemption would apply
  • Apportionment and tracing issues to determine which interest would be limited
  • How interposed entities would be treated
  • Implications for the ring-fencing of rental losses and mixed use asset rules

 

Bright-line Test

  • How the bright-line test would apply to “new builds”
  • How the main home exemption would apply to new builds
  • Outline how the roll-over exemption for certain related party transfers might apply if implemented

 

Total CPD Hours: 1.25 (1 hour + 15 min Q&A)

 

Suited to:

The course will be suited to all levels of accountants, corporate professionals, public practice – law and accounting, general business advisors.

 

PRESENTER

 

Daniel Gibbons, Partner, Findex/Crowe

 

Daniel is a Partner for Findex in Queenstown.  Daniel has been with Findex for 13 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.