Lifetime Property Accounting

Lifetime Property Accounting Creating greater financial certainty through all life stages. Property decisions are big-dollar decisions.

Lifetime Property Accounting
Specialists in property tax, structuring, and investment accounting for nearly 20 years. The right structure can save you thousands in tax, protect your assets, and keep your cash flow working for you. The wrong one can lock you into costly mistakes that are difficult to undo. That’s why property investors need more than a general accountant; they need a specialist who

understands the rules, the risks, and the opportunities unique to property. From rentals to developments and trading, property decisions all come with tax rules, structures, and long-term implications to navigate. At Lifetime Property Accountants, we focus on making those decisions clearer and your accounting simpler with tools like Xero. We specialise in guiding investors through every stage of property ownership. We can help you with:
Buying or selling rentals – understand cashflow and tax implications before you commit. Reviewing your rental portfolio – ensure your properties are set up in the most tax-effective way. Turning your home into a rental – know the financial and tax consequences upfront. Developments and subdivisions – assess whether adding units or building new property will create equity and workable cashflow. Property trading – understand GST rules, tainting, and risk management. Ownership structures – including Trusts and Look-Through Companies (LTCs). Long-term property strategy – align your decisions with future goals

Xero integration – make your accounting easier with cloud-based tools

A great starting point is to organise a free 5 or 10 minute chat with Ross to see how we can help - https://www.lifetime.co.nz/business-advice/accounting/lifetime-property-accounting/

What is the biggest mistake Property Traders make? GST and zero rating. Normal situation - Generally, GST registered Pro...
03/06/2026

What is the biggest mistake Property Traders make?

GST and zero rating.

Normal situation - Generally, GST registered Property Traders will buy from a non GST registered vendor and then be entitled to a GST claim on the purchase. For example, if buying for $690,000, the GST registered Property Trader would get a GST refund of $90,000.

BUT, sometimes the vendor is another Property Trader, or Developer and the vendor is also registered for GST. As both the vendor and purchaser are GST registered, the sale is zero rated. This means the purchase price should be the GST exclusive value, but often the Sale and Purchase agreement is incorrectly completed. Using the example above, the price should be $600,000 + GST.

Common mistakes we see, using the same example as above:

1) Sale and Purchase agreement between two GST registered parties at $690,000 inclusive of GST - unfortunately, this means the transaction zero rates at $690,000, meaning the purchaser has effectively purchased for $793,500, or paid an extra $103,500 more than expected. This could result in a significant loss for the Property Trader purchaser. Great for the vendor!

2) Front page of Sale and Purchase agreement not completed, and not confirmed whether Vendor is GST registered. A key requirement, when you are a GST registered Property Trader is knowing for certain the vendor's GST status. Otherwise, you might have overpaid on the purchase.

3) Schedule 1 not completed - To reduce risk, always complete Schedule 1 to make it 100% clear that you are buying as a GST registered Property Trader and using the property as part of your taxable activity. Sometimes this can also identify that while the vendor is GST registered, part of the property might not be part of the taxable activity. This could mean, even with the transaction being zero rated, the purchaser may be entitled to an additional GST claim! This is more likely when purchasing a lifestyle property or farm. For example, a lifestyle property is sold for $1m plus GST, with the agreement stipulating the house and curtilage are $700,000 and not part of the vendor's taxable activity, and the land is part of the taxable activity at the remaining $300,000. In this case, a GST registered Property Trader purchaser using the whole property for their taxable activity (property trading) could claim the GST back on the $700,000 house and curtilage, which equals a $91,304 GST refund!

The best advice is to send us a copy of the Sale and Purchase agreement and have a quick chat with Ross to make sure you are not making a costly GST mistake. Please ensure the front page is completed first and it is clear whether the vendor is GST registered or not!

02/06/2026

Are you claiming income protection insurance as an expense in your tax return?

Big change in the Budget 2026 was the Foreign Investment Fund (FIF) threshold increasing from $50,000 to $100,000. This ...
01/06/2026

Big change in the Budget 2026 was the Foreign Investment Fund (FIF) threshold increasing from $50,000 to $100,000.

This is NOT legislation yet, but likely to apply from 1/4/26.

If below the threshold, you don't have to apply FIF rules, which is likely to reduce tax payable. However, you may still have other income from the Foreign investments that needs to be returned.

- The $50,000 or $100,000 threshold is based on the total cost, not the market value.
- The threshold is not tested on a single day and can be any time during the year. For example, if you begin the year with a cost of $90,000 and purchase an additional $15,000 of foreign investments, this would push you over the threshold and require you to apply FIF rules.
- FIF rules apply if the total cost is more than $50,000, or more than $100,000 under the new proposal.
- Many Australian investments are excluded from FIF rules.

If your foreign investments exceed the threshold, there are two main FIF calculation methods, and you can generally use whichever produces the lower income:

1) Fair Dividend Rate (FDR) - 5% of the opening value is treated as income. For example, if you had $200,000 of Foreign investments at 1/4/25, the income to return under FDR would be $10,000.

2) Comparative Value (CV) - This method compares the opening and closing values. The increase in value is taxable income. If there is a loss, the income is treated as $0. For example, if you had $200,000 of Foreign investments at 1/4/25, and the value increased to $250,000 at 31/3/26, the $50,000 gain would be taxable income under CV method.

In the example above, you would choose the FDR method and return the $10,000 income, as it is the lower of the two.

If this becomes legislation, it is a great idea.It makes the rules much easier to follow and means FBT costs would reduc...
29/05/2026

If this becomes legislation, it is a great idea.

It makes the rules much easier to follow and means FBT costs would reduce where there is minimal private use.

It will be interesting to see the final legislation, but fingers crossed this should be helpful.

Treasury is now forecasting 4% house price growth for year ending 30/6/2027. Growth is then expected to remain around th...
28/05/2026

Treasury is now forecasting 4% house price growth for year ending 30/6/2027.

Growth is then expected to remain around this level through to 30/6/2030.

This is a significant change from last years forecast of 6% + growth!

The big question is: are the forecasts accurate? Realistically, only time will tell!

Crypto - Make sure you let your accountant know if you have Crypto!Is it taxable? It depends on your exact situation. I...
25/05/2026

Crypto - Make sure you let your accountant know if you have Crypto!

Is it taxable?
It depends on your exact situation. IRD view Crypto as Property.

Key things;
1) Make sure you accountant knows about your Crypto. If you have not included Crypto gains in losses or past tax returns, IRD can go back and review these.

2) If you haven't returned with IRD in the past, don't panic! Have a chat to your accountant - it's generally quite easy to fix and reassess prior years if necessary.

3) You need a system, information or reports to work out your profit and loss on each trade.

Example / Case Study;

Joe purchased Ethereum (ETH) - 10 units * $3,785 in Feb 2024(total cost $37,850).
Then sold 10 ETH at $6,000 in Dec 2024 ($60,000 total).

Joe used the $60,000 proceeds to buy XRP, which he still holds.

For the tax year ending 31/3/25 (2025 year), Joe would have a taxable gain from Crypto of $22,150, less any associated costs.

The fact the money is reinvested does not change the taxable gain from the ETH sale.
This is an extremely simple example - it becomes much more complicated when there are multiple trades and part sales.

If you are one of our clients, and haven't returned Crypto sales/gains, it's worth having a quick chat with Ross to work out our next steps.

What is an example of a good rental? In our opinion, to get ahead with property there needs to be some kind of added val...
25/05/2026

What is an example of a good rental?

In our opinion, to get ahead with property there needs to be some kind of added value potential or alternatively amazing cashflow. Here is a recent, real example of a property investor adding initial equity through subdivision.

Purchase Property $750,000
Subdivide and add two new houses $1m
Total cost $1.75m

Upon completion, worth $2.3m.

Gain in value approximately $550,000. There were around $50,000 of interest and holding costs, so the real gain is approximately $500,000.

The market has been flat, so no capital gain or loss from market movement.

With 100% debt (most investors borrow 100%), on interest only basis, the rent just pays all the expenses and is $1,500 approximately positive per year.

Why do we think this is a good rental?
- Large initial capital gain of $500,000 created. If the market were to drop or the property investor forced to sell, there is a buffer, making it likely they would still come out ahead.
- This gain has been generated with no actual cash invested, and in under 12 months. This is where a good property investment can have a significant advantage.
- Two new houses with low maintenance expected for next 10 years.
- Two new houses that should be attractive to tenants, being warm, dry, double glazed.
- With interest rates predicted to go up and full 100% debt, these properties are forecast to lose $71,000 over the next 10 years on interest only basis. Ideally, this would be a positive figure, but for these investors it's quite manageable at around $136 per week top up, as they are debt free on their personal house.
- The houses are in an area expecting strong population growth, so a much higher capital gain over 10 years is anticipated compared to the 71,000 expected cash loss.
- Three separate houses on three separate titles, so if needed one house could be sold (always get tax advice to check if gains are taxable).

Note - every investor is different and in a different position, and this property example won't suit everyone. However, we are seeing that some property investors are still able to add significant equity in this market and/or achieve good cashflow (often the two go hand in hand with value add projects that improve cashflow).
[picture is not the actual subdivision]

Should you gift money to your children? NO is the simple answer.Example - You want to help your child into their first...
20/05/2026

Should you gift money to your children? NO is the simple answer.

Example - You want to help your child into their first home, and the mortgage advisor has suggested that you gift them say $100,000. The issue with a gift is that if your child separates from their partner in the future, then they could lose half.

A better way is to set this up as a formal loan to your child and their partner, with no interest and no repayments (unless they split up or property is sold). Your lawyer can help set this up correctly and ensure you and your child are protected. Then if your child separates, the $100,000 goes back to you first, and then the child and partner split their remaining assets.

It's important to check with your mortgage advisor and/or bank that this loan will still work for lending purposes.

Have you moved to Australia or are you looking to move to Australia and rent out your former personal house? Here are so...
18/05/2026

Have you moved to Australia or are you looking to move to Australia and rent out your former personal house?

Here are some great tips to reduce your tax and avoid future issues:

1) Get a chattels valuation done from Valuit. This costs around $500 and can save thousands in tax. This is generally the best tip to reduce tax payable on rentals. Check out more on www.valuit.co.nz .

2) You will need to do a NZ tax return and will likely pay Tax in NZ. If this is your only income in NZ, it is likely to be taxed in NZ at a low rate of 10.5% or 17.5%.

3) Can you restructure your NZ rental?
Often, when a former personal house becomes a rental, we look at selling the property to a new entity (restructure). Thiscan allow you to borrow more debt to purchase the now rental property, resulting in higher interest deductions and less tax payable. You might find this video useful, "What is a restructure and how does it work if you keep your ex personal house as a rental . Part 2" https://www.youtube.com/watch?v=ShF4viV4cKc

4) Double tax and tax in Australia.
A Double Tax Agreement (DTA) exists between NZ and Australia, which generally means you won't pay double the tax. Typically, in another country such as Australia, you will declare the NZ rental income and receive a credit for NZ tax already paid. However, you may need to "top up" the tax paid in your new country, as the Tax Rate is likely to be higher. For example, if your Australian tax rate is at the top rate of 45% and if you have only paid 10.5% in NZ, you may need to pay up to an additional 34.5% extra tax in Australia. We recommend you talk to an Australian accountant to understand this fully.

5) You could potentially be liable for Capital Gains Tax (CGT) in Australia on your New Zealand property. We recommend getting expert advice from an Australian accountant on this topic.

6) There have also been recent changes to Australian tax rules for rentals that might affect you (May 2026).

If you are considering this change, we recommend having a quick free chat with Ross as a starting point. https://www.lifetime.co.nz/business-advice/accounting/lifetime-property-accounting/book-a-consultation-property-accounting/

Address

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Christchurch
8140

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+64 7 839 2801

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