On the 23^rd of March 2021 the government announced new tax rules that will greatly impact residential property.

PART 1 – BRIGHT LINE TEST

The Bright-line rules have gone through another round of remedial changes and adjustments as a result of the introduction of the Taxation (Annual Rates for 2022-2023, Platform Economy, and Remedial Matters) Bill (No 2). Then, changes in the Bill when it was introduced on 8 September 2022 were altered and tweaked when the Bill was reported back in March.

In this course, we will look at the rules as a whole and consider the impact of the recent changes on how the rules can be applied.

The is an opportunity to come to terms with the rules as they now stand, the lessons we have learned, and to look at what options you may have in terms of restructuring ownership of residential land.

Upon satisfactory completion of this activity you will be able to know/understand:

BRIGHT-LINE

How the bright-line test will apply, including:

• What properties will be affected and from when
• How “New builds” will be treated

How the “main home” exemption will apply given change to 100% main home, including:

• What happens when there is a change in use during ownership period
• How the 12-month buffer rule will apply
• Who is a “principal settlor”

ROLLOVER RELIEF

• To what situations do these apply including the recent changes, including transfers to and from a trust
• Practical considerations and options for restructuring.

1.25 CPD hours

The course will be suited to all levels of accountants, corporate professionals, public practice – law and accounting, general business advisors.

To purchase Part 1 only, please click here

PART 2 – INTEREST DEDUCTIBILITY

The interest deductibility rules have been tweaked again as a result of the introduction of the Taxation (Annual Rates for 2022-2023, Platform Economy, and Remedial Matters) Bill (No 2). Then changes in the Bill when it was introduced on 8 September 2022 were adjusted when the Bill was reported back in March.

In this course, we will look at the rules as a whole and consider the impact of the recent changes on how the rules can be applied.

We will outline the changes and provide practical examples of how the rules might impact those who own residential property.

This is a chance to reflect and regroup. We will take the opportunity to look at the rules and what it means, as well as what, if any, opportunities there are to restructure property ownership and borrowings.

Upon satisfactory completion of this activity you will be able to know/understand:

INTEREST DEDUCTIBILITY

Revisiting how these rules apply and to what properties.

How the interest deductibility criteria applies, including:

• distinction between new and old property
• Timing of loss of deduction including the 4-year phase out of deduction
• Impact on “new builds”

How roll-over relief will apply to grandparent loans.

The practical implications of the recent changes including the interaction between the mixed-use and interest deductibility limitation rules.

1.25 CPD hours

The course will be suited to all levels of accountants, corporate professionals, public practice – law and accounting, general business advisors.

To purchase Part 2 only, please click here

PRESENTER

Daniel Gibbons, Partner, Findex/Crowe
Daniel is a Partner for Findex in Queenstown. Daniel has been with Findex for 14 years, where he advises on a wide range of tax matters, including property transactions and property ownership structures, international taxation issues, the tax treatment of investments and providing structuring advice to clients, including assistance for family group restructures. Daniel is recognised as a leader in the taxation treatment of short stay accommodation, providing training to other practitioners.