residential property accounting

IRD Update – Warning For Our Property Investor Clients

IRD recently passed legislation relating to ring fencing of residential rental property losses. This could have a significant impact on your tax position for the year ended 31 March 2020, and you need to plan for this now!

If your residential rental property is generating tax losses, then the resulting tax refunds (or reduction in tax payable) that you have received in the past will not eventuate when your March 2020 tax return is filed. Instead the tax losses will carry forward to offset against future income in relation to the property.

If this applies to you, we recommend that you contact us now and we can explain the impact in more detail, so you can plan how best to deal with this from a cashflow planning perspective.

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