As many of you will know, the rules applying to interest deductions for residential rental properties changed from 1 October 2021.
It is no longer possible to deduct interest on borrowing to purchase property after 27 March 2021.
For residential rental properties purchased prior to 27 March 2021, interest deductions from 1 October 2021 to 31 March 2022 were reduced to 75%.
From 1 April 2022 to 31 March 2023, the claim will remain at 75%. For the period 1 April 2023 to 31 March 2024, the claim reduces to 50%, and for the period 1 April 2024 to 31 March 2025, the claim reduced to 25%.
If these rules impact you or you wish to understand these in more details, please call us.
admin@brownglass.co.nz
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Burnside
Christchurch 8053
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PO BOX 39195
Harewood
Christchurch 8545