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  • doing tax on-line

    anyone know

    when using the IRD online website to fill out the IR3 tax return

    do mortgage interest payments have a special place to be entered against rental income?

    or are they simply treated as an "expense"?
    have you defeated them?
    your demons

  • #2
    Need to do an IR3R for each property, then take the total result into the Net Rents box on IR3. The IR3R only asks for rent income and expenses. Need to make sure that Net Rents is exactly the sum of all IR3R rents less expenses or looks like an IRD flag will be thrown up.

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    • #3
      thanks artemis!
      have you defeated them?
      your demons

      Comment


      • #4
        When I do my LTC's return, it never asks me for rents and expenses, just the annual profit or loss (net rents). I've never had to do anything else. So no IR3R for each property.
        I get sent a DLN each year, log in, do the IR3 and that's all. I then do my personal return and the refund turns up in my bank account. When I've spoken to the IRD, they've never told me that I need to do an IR3R.
        My blog. From personal experience.
        http://statehousinginnz.wordpress.com/

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        • #5
          ^

          presumably because your Look Through Company

          files detailed returns?
          have you defeated them?
          your demons

          Comment


          • #6
            Originally posted by sidinz View Post
            When I do my LTC's return, it never asks me for rents and expenses, just the annual profit or loss (net rents). I've never had to do anything else. So no IR3R for each property.
            I get sent a DLN each year, log in, do the IR3 and that's all. I then do my personal return and the refund turns up in my bank account. When I've spoken to the IRD, they've never told me that I need to do an IR3R.
            Hi
            Same here.

            IR7L with an IR10 attached for my LTC

            IR3 for me

            Done this for the last 4 years and never had a problem.

            Thanks
            Richard

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            • #7
              I do a ir4 .never had to produce an individual account for each property ...it would be pretty now as loans are all merged

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              • #8
                Originally posted by eri View Post
                ^

                presumably because your Look Through Company

                files detailed returns?
                Nope. Only net profit/loss. They have never asked for any kind of breakdown of income/expenses.
                My blog. From personal experience.
                http://statehousinginnz.wordpress.com/

                Comment


                • #9
                  The IR4s (Companies) and IR7s (LTCs & Partnerships) filed online don't request IR3Rs. No idea why. Only the IR3A (Individual) and IR3NR (Non-Resident Individual) require this.

                  However, for the companies, LTCs, etc, you do need to fill in an IR10, which is a much more detailed version of the IR3R, encompassing all business activities, and also needs a view of the Balance Sheet.

                  The IRD website gives you an option for "Are you filing your IR10 online now with this return?" and you can say no, but they do expect you to then send in a physical return. If you don't send one, they don't follow up with you. But my understanding is that by not completing all required documents for the year your return is not considered entirely complete, and so doesn't start the four-year 'no further enquiries' countdown.
                  AAT Accounting Services - Property Specialist - [email protected]
                  Fixed price fees and quick knowledgeable service for property investors & traders!

                  Comment


                  • #10
                    Originally posted by Anthonyacat View Post
                    The IR4s (Companies) and IR7s (LTCs & Partnerships) filed online don't request IR3Rs. No idea why. Only the IR3A (Individual) and IR3NR (Non-Resident Individual) require this.

                    However, for the companies, LTCs, etc, you do need to fill in an IR10, which is a much more detailed version of the IR3R, encompassing all business activities, and also needs a view of the Balance Sheet.

                    The IRD website gives you an option for "Are you filing your IR10 online now with this return?" and you can say no, but they do expect you to then send in a physical return. If you don't send one, they don't follow up with you. But my understanding is that by not completing all required documents for the year your return is not considered entirely complete, and so doesn't start the four-year 'no further enquiries' countdown.

                    Hi
                    can you tell us a bit more about the 4 yr thing please?
                    Thanks
                    Richard

                    Comment


                    • #11
                      It's known as the "Time Bar", and is somewhere in the Tax Administration Act 1994, though I can't find the reference right now. Basically the IRD can't reassess you to pay more tax more than four years after you file your return. There are loopholes for fraud and missing income etc, but that's the gist of it.

                      But I don't think the time bar period starts until you have fully filed your return, including associated IR3Rs or IR10s - though this is just hearsay, I've never actually read that in the legislation.

                      There's further discussion about it here: http://www.ird.govt.nz/technical-tax...oryperiod.html

                      EDIT: And there's a nice little article in Stuff here from a few years ago:

                      2)
                      Once filed the IRD has 4 years from the end of the income year in which a return is filed to issue an assessment or reassessment. If it is a false return, or the return omitted income from any particular source, there is no such limitation. Thus non disclosed property deals have no statute of limitations protection and may be assessed by the IRD at any time.

                      AAT Accounting Services - Property Specialist - [email protected]
                      Fixed price fees and quick knowledgeable service for property investors & traders!

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                      • #12
                        Hi
                        Thanks for explaining that.
                        Richard

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