Hi
Reading this article yesterday.
You can search "Tax warning for holiday rentals" at NZ Herald website.
This could be a tax related post, I think it can also be a general discussion.
According to the article, any rental income over $6k a year will require to register GST and pay GST.
So almost all investors who own more than 2 rental properties in Auckland will require to register GST and pay GST.
(assume each rental gets $600 a week, 2 x $600 x 52 = $62400)
Paying 15% GST on the revenue which is equivalent to adding X% for interest on the mortgage.
And when the property sold, owner has to pay GST on the sale, isn't it will be much greater than the Capital Gain Tax?
(CGT calculate from the gain, while GST calculate from sale)
Why people still want to implement CGT?
Just wondering are investors who own more than 2 rental properties will have to create more entities to holding the properties to limit the rental income within the $6k GST threshold?
Am I interpret the article correct?
Thanks
Vincent
Reading this article yesterday.
You can search "Tax warning for holiday rentals" at NZ Herald website.
This could be a tax related post, I think it can also be a general discussion.
According to the article, any rental income over $6k a year will require to register GST and pay GST.
So almost all investors who own more than 2 rental properties in Auckland will require to register GST and pay GST.
(assume each rental gets $600 a week, 2 x $600 x 52 = $62400)
Paying 15% GST on the revenue which is equivalent to adding X% for interest on the mortgage.
And when the property sold, owner has to pay GST on the sale, isn't it will be much greater than the Capital Gain Tax?
(CGT calculate from the gain, while GST calculate from sale)
Why people still want to implement CGT?
Just wondering are investors who own more than 2 rental properties will have to create more entities to holding the properties to limit the rental income within the $6k GST threshold?
Am I interpret the article correct?
Thanks
Vincent
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