Interest Deductibility for Rental Properties

The National government plans to completely reverse Labour’s interest deductibility tax law by April 2025. Until then, starting from April 1, 2024, property investors will be able to claim 80% of their interest expenses. This adjustment translates to reduced tax payments and increased profits for property investors.

In such a dynamic period, it’s natural to seek clarity on navigating these changes. Zest Accountants, our mission is to empower you with comprehensive knowledge.

Quick Facts:

  • Starting from April 1 2024, property investors can claim 80% of their interest expenses, which will increase to 100% by April 1, 2025.
  • This tax alteration will lead to decreased tax obligations and enhanced profitability for property investors.
  • New builds will no longer hold a tax advantage over existing properties.

If you have any more questions on this and how this will impact you, please reach out today!

Leave a Comment

Your email address will not be published. Required fields are marked *