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Thread: Filing IR4 2019

  1. #21
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    Quote Originally Posted by eri View Post
    minor question

    when filing the rental returns for an apartment on the new IRD website

    should BC Charges be listed, as such, in the "repairs + maintenance" box

    or separately listed beneath as "other expenses"?
    Are they repairs or other expenses?

    Body Corporate charges are generally some of each, so technically you should seperate the repair part of your body corporate into repairs.

    Also has the BC actually spent all you have paid, or do you own a portion of a bank account for future maintenance?

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  2. #22
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    i think that may be overthinking the issue

    the ird can't be expecting 450? owners to pick apart a million dollars of annual expenditure into that detail

    then enter it all in 1 line of a form...

    hoping there was a "standard" response to a question that will affect 10,000s of rental properties

    but like many things in NZ

    it seems it's too early to ask for direction

    as it's still soon after the goal posts were marching around in the fog

    for a consensus to have been reached on where they actually stopped!

    ...

    after living + working in a few countries

    it strikes me that the nz urge to change everything

    every few years

    is starting to become counterproductive

    our systems are becoming everly more complex

    and the institutional? memory lost when the rules of the game are tossed out

    is leading to greater inefficiencies + inconsistenciesthan the actual "change" is able to counteract

    we've grown up now

    and our love of the game twister

    now just leads to days hobbling around on pulled muscles



    Last edited by eri; 29-04-2019 at 08:03 PM.
    have you defeated them?
    your demons

  3. #23
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    The information in a tax return gives IRD information. An area of real mistakes and issues is repairs.

    So IRD would like to know the total of your repairs. Whether you pay, the body corporate pays or your property manager pays is meaningless to IRD.

    Say for example there is a leaky building issue and you pay $50,000 to BC for this. IRD would like to see this transaction so they can consider if they need to review it.

    If you don't file correctly then you can lose some rights if there is a dispute, and might not be able to stop IRD looking at old years.

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  4. #24
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    So not overthinking the issue. Pretty simple to work out the repairs (divide total repairs by 450), and your share of the future maintenance accounts that hasn't been spent yet.

    If tiny repairs then is probably not an issue, but if major repairs then better to report correctly to IRD.

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  5. #25
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    thanks Ross

    but i doubt it can practically be done

    ie where would $50,000? spent engaging engineers to debate

    council engineers questioning

    of the original architectural assumptions lie

    repairs + maintenance, or other?

    if other...then that should be divided by 450 first to reflect 1 owners contribution?
    remember the BC committee generally take a year to tell owners what happened after they got the resolution passed to engage the 3rd set of engineers.....you give permission to spend the money in 1 year....but you don't actually know if it was spent until a year later

    .....

    drug sniffer dogs - maintenance?

    installation of better CCTV systems?

    replacement of the entire buildings hard wired smoke alarms - repairs or maintenance?

    remember, this doesn't appear to be the old form where you could attach extra pages

    you get 1 or 2 lines....i wouldn't want to crash my return by submitting 50 extra lines to that part of the form

    am thinking if 1 of the 450 owners entered 50 lines of itemised repairs and maintenance

    most won't

    and of the few that do

    the chances that they all do it in the same format is zero...

    a nightmare

    seems to me

    IRD would prefer a simple line of "Body Corporate Levy"....which is why i question the loss of the address of the property...they can't remotely check your BC costs now without calling for an audit

    maybe i should call tomorrow

    just to log my protection for plausible deniability

    hope i get in before the other 449

    or the lines will be jammed
    Last edited by eri; 29-04-2019 at 08:27 PM.
    have you defeated them?
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  6. #26
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    If you are filing your own tax return it is your responsibility to know what items are claimable as repairs, what are claimable as other expenses, what are assets to be depreciated and what is not claimable at all!

    So if you claim your 1/450th as body corporate costs, it is not likely to be correct and you need to look further at the actual costs.

    Otherwise why don't you just make up a figure and use that? (this is a joke to illustrate my point and I'm not actually suggesting you do this).

    Unfortunately tax and property is not simple!

    Ross
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.

  7. #27
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    thanks

    the call goes in tomorrow
    have you defeated them?
    your demons

  8. #28
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    Feb 2013
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    329

    Default

    Quote Originally Posted by Beano View Post
    I would not "cease " and cancel gst registration as it looks like you are still in business
    Slowing done but when business comes you still work
    Just estimate a lower income for the pending year for the ird
    Not doing any business at all now. Focusing on other things .
    So tax paid for 1st year YE2018. Now I have received a request to pay x amount provisional tax but have only worked 8 months for Ye2019. I guess one way would be to do the actual return before 7 May ?

    And how does this affect the assets depreciation calculation.

  9. #29
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    Mar 2015
    Location
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    Default BC levies

    Quote Originally Posted by Rosco View Post
    If you are filing your own tax return it is your responsibility to know what items are claimable as repairs, what are claimable as other expenses, what are assets to be depreciated and what is not claimable at all!

    So if you claim your 1/450th as body corporate costs, it is not likely to be correct and you need to look further at the actual costs.

    Otherwise why don't you just make up a figure and use that? (this is a joke to illustrate my point and I'm not actually suggesting you do this).

    Unfortunately tax and property is not simple!

    Ross
    This is a very good point Ross
    1: Many expenses like engineer fees may need to be capitalised and if you claim the whole BC levies as expenses you would be open to the IRD rejection
    2: Building reserve levies portions in the BC levy again is another area where the amount is not deductable
    3: I suggest every person who is renting out a property break the BC levy into the correct IRD classification
    4: I suggest everyone writes to the BC managers and suggests the BC managers place the expenses in the correct classification.

  10. #30
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    Quote Originally Posted by BlueSky View Post
    Not doing any business at all now. Focusing on other things .
    So tax paid for 1st year YE2018. Now I have received a request to pay x amount provisional tax but have only worked 8 months for Ye2019. I guess one way would be to do the actual return before 7 May ?

    And how does this affect the assets depreciation calculation.
    Often you would guess your tax due and pay this. Don't actually estimate!!!

    This means if you get it wrong you could use tax management NZ later to buy the tax at 7/5/19 and avoid any penalties and interest.

    Then when you complete your tax return there would be a washup

    Ros
    More Profit from Property? TEACH ME MORE
    Ross Barnett - Coombe Smith Property Accountants
    Proud to give the best property advice for over 13 years.


 

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