Chartered Accountants Auckland

Gift duty going going gone

September 2nd, 2011 | Posted by Accountants Auckland in Gift Duty | Trusts - (Comments Off on Gift duty going going gone)

GiftWith gift duty abolished this week you may be tempted to gift everything in one lump sum but here are a few key things to think about first. Gifting all your debt so that the trust no longer owes you a penny may give you far better control over your Will/Estate.  It might also make it that bit harder for the Trust to be dragged into any  relationship property claims. But be careful because, without that debt, you might lose some control of the Trust and your ability to take money out of it. You may also stand to lose some tax benefits if (more…)

000019515159Here’s a nice simple once-over to clarify all the media fuss surrounding the changes to rental property depreciation. Essentially, from 1 April 2011, you can no longer claim building depreciation but thankfully you’re still able to claim depreciation on chattels.  This is a plus because chattels, such as carpet and curtains, generally have a far higher depreciation rate.   And although losing the building claim may seem a little rough it’s generally only a question of timing because the building depreciation claim is often reversed when you sell the property for more than it originally cost you. (more…)