First time landlord here. Interested to get some additional advice on what is needed to ensure that I can deduct mortgage interest from rental income.
Just over a year ago, I bought my first home in Wellington and have been living there since. Recently though I got contracts up north and won't be near Welly so I will be renting out the whole (2-bed) house, until this time next year.
An accountant advised me that, because I bought the house as a first home buyer, Kiwisaver included, and intended to live there, I cannot deduct mortgage interest from rental income and that I need to form a trust, to fix this. Is this what you would expect? Does it perhaps depend on the specifics of my home loan agreement with the bank?
It's of course past the 6 month req for Kiwisaver use and I can prove that I've moved to a new situation via a tenancy agreement, so I'm uncertain of the need to set up a Trust.
Thanks!
Amanda
Just over a year ago, I bought my first home in Wellington and have been living there since. Recently though I got contracts up north and won't be near Welly so I will be renting out the whole (2-bed) house, until this time next year.
An accountant advised me that, because I bought the house as a first home buyer, Kiwisaver included, and intended to live there, I cannot deduct mortgage interest from rental income and that I need to form a trust, to fix this. Is this what you would expect? Does it perhaps depend on the specifics of my home loan agreement with the bank?
It's of course past the 6 month req for Kiwisaver use and I can prove that I've moved to a new situation via a tenancy agreement, so I'm uncertain of the need to set up a Trust.
Thanks!
Amanda
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