Updates & Articles

Residential investment property and interest deductibility

Property investors were shocked in March 2021 by changes announced for residential investment properties.

The changes to interest deductibility attracted the most controversy, even more than the extension of the brightline test and changes around the exemption for the main home.

Since then, the Government has released proposals for consultation, addressing some complex issues, including:

  • the types of taxpayers affected by the rules
  • what types of property will be excluded, and
  • how a ‘new build’ is defined (new builds being exceptions to the proposed interest rules and the new 10-year bright-line test).

Most taxpayers who own residential property will be caught by the new rules: individuals, trusts, partnerships, limited partnerships, and certain companies.

The proposed rules apply to property used to provide long-term residential accommodation (eg properties subject to the Residential Tenancies Act 1986), as well as short-term accommodation (eg Airbnb properties). Under the proposals, some types of property are excluded while some questions still hang over others.

The proposals are complex. Consultation closes on 12 July 2021, with the measures to apply from 1 October 2021. For more detail on how the proposals affect your business, please contact us.

The Maritime Museum Foundation has enjoyed a significant long term relationship with the team at Lynch & Associates. They continue to provide our board with outstanding professional service and sage advice. I would unreservedly recommend their accounting, audit and advisory services.”

Eric Mahoney, Chairman, Maritime Museum Foundation

Lynch & Associates have been our accountants since 2018. Through that time their friendly and approachable team have guided us and made good, clear recommendations for our theatre company for children. Their support and advice continue to help create a stronger, more sustainable charitable organisation. 

Tim Bray, QSM, Trustee and Artistic Director, The Operating Theatre Trust

It has been a pleasure working with Errol Burn and the team at Lynch and Associates, their insight, intelligence and in-depth knowledge of the social impact sector has allowed the Sir John Kirwan Foundation to flourish and grow.  Fully supporting the Foundation in all of its financial needs, Lynch and Associates have never failed to deliver, always providing calm, thoughtful advice together with encouraging us to consider every aspect, to ensure maximum benefit.

Nikki Flexman, Head of Growth, Sir John Kirwan Foundation

We have used Lynch and Associates services for over 15 years and have always found them to be a very friendly, helpful and professional team. They also really care about us and our business, as they went out of their way to assist us during difficult times. We have also used their professional business services that proved invaluable in helping us to get through a rough patch and refocus our efforts. Their approach to business services was understanding of our situation but well blended with firm encouragement to address issues and make strides towards improvement. We highly recommend them for both their accounting and professional business services.

Darryn Smith, Director, Multicolour Screen Printers Limited

A huge “Thank You” and shout out to the team at Lynch & Associates for all the consulting and accounting services they have done for my wife and I over the past 12 years. The team have work diligently on both trusts and a number of companies for us over this time and long may this continue. It is so great to engage with a professional proactive team that results in no sudden surprises at the end of the tax period. We look forward to the catching up soon and hearing what is new and how else we can move forward faster financially.

John and Shelley Bishop 

North Shore Riding for the Disabled is one of 50 RDA Groups across the country. Our previous auditor resigned suddenly and we were left searching for a new firm to handle our work. Errol Burn at Lynch & Associates stepped straight into the situation and we could not be more delighted with the way in which our subsequent audit was managed. Timely, insightful and always available, we could not be more pleased and look forward to a long relationship – indeed, we were more than happy to recommend them to our National Body when their audit was taken to the market.

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Phone +64 9 366 6005
Email: admin@laaca.co.nz

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B:HIVE, Smales Farm
74 Taharoto Road, Takapuna
Auckland 0622
New Zealand

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