Taxation laws can catch new landlords out
First-time landlords in Auckland are being reminded not to be caught out in their tax-paying duties.
Rental income is taxable regardless of whether it comes from a residential property, a room in a landlord’s house, a sleep-out, caravan or holiday home.
New Zealand Property Investors’ Federation executive officer Andrew King says Aucklanders may well need reminding of this.
‘‘More people are renting out all or parts of their properties. In Auckland there is a high demand for rentals and a constant turnover of landlords.
‘‘Many people renting out accommodation may be firsttime landlords and some may not be aware they have to pay tax.’’
Inland Revenue investigations and advice group manager Patrick Goggin says the department is working closely with new landlords in Christchurch and Auckland in particular.
If landlords have been renting properties out for a longer period they might find themselves scrambling to file their tax return on time and should speak to Inland Revenue as soon as possible, he says.
‘‘People who are thinking of renting out accommo- dation should find out what tax they’ll need to pay so they can include it in their plans.’’
Income tax returns are due to Inland Revenue by July 7.