Hi
I've been thinking of converting my owner-occupied property to a rental property. I currently own a separate rental property through a LTC. For personal reasons, I would like to keep these two properties separate.
Questions:
1) Does the bank need to know and why (if so)?
2) How does that affect the deductions etc for expenses/depreciation when it comes to taxes? Will IRD wonder why a owner of an owner-occupied property is claiming expenses/rental income?
3) Does IRD need to know about the conversion?
4) For home-based businesses, I understand that you can claim a certain proportion of expenses on the home (for e.g. rates/insurance/mortgage interest) that's related to the business. Is there a rule of thumb in terms of %? I am assuming such businesses can be web-based.
Thanks all for your help!
I've been thinking of converting my owner-occupied property to a rental property. I currently own a separate rental property through a LTC. For personal reasons, I would like to keep these two properties separate.
Questions:
1) Does the bank need to know and why (if so)?
2) How does that affect the deductions etc for expenses/depreciation when it comes to taxes? Will IRD wonder why a owner of an owner-occupied property is claiming expenses/rental income?
3) Does IRD need to know about the conversion?
4) For home-based businesses, I understand that you can claim a certain proportion of expenses on the home (for e.g. rates/insurance/mortgage interest) that's related to the business. Is there a rule of thumb in terms of %? I am assuming such businesses can be web-based.
Thanks all for your help!
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