Tax­a­tion laws can catch new land­lords out

Auckland City Harbour News - - NEWS -

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.

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