This course will focus on practical questions and issues that people have in relation to the residential ring-fencing rules. These rules only came into effect in the 2020 year and although they had been discussed at length, the application of the rules has been more problematic than anticipated. We will cover an overview of the rules, focusing in particular on those that create issues for us in practice. We will also touch on the proposed new rules in terms of bright-line and interest deductibility as they relate to ring-fencing.

We will work through a number of questions that arise in terms of how to practically deal with these rules, how to lodge returns with the Inland Revenue Department to ensure that the appropriate position is taken, and the issues surrounding the election process and certain aspects of look-through entities such as a look-through company or a partnership.

Whilst looking at practical examples, we will cover the things that you need to know and the position that has been put forward by the Inland Revenue Department, in practical terms, on how to deal with these rules.

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

• Understand practically how the loss ring-fencing rules will apply
• Address property by property versus portfolio issues and make appropriate choices
• Enter the appropriate information into income tax returns so as to ensure the return details are processed correctly, including dealing with those who can fall in and out of the rules
• Cover properties that can inadvertently or unwittingly be subject to the rules.

Suited to:

• accountants advising clients and completing income tax returns for clients that have residential rental properties
• residential property investors.

PRESENTER

Daniel Gibbons, Partner, Findex/Crowe

Daniel is a Partner for Findex in Queenstown.  Daniel has been with Findex for 13 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.