Potential tax saving on work done to get your rental property compliant with Healthy Homes Standards
June 3rd, 2020
As part of the government’s Covid-19 Response Act 2020, the definition of a ‘low value item’ (that can be treated as an expense for tax purposes, rather than be depreciated over time) was crucially altered.
Previously such ‘low value items’ were limited to $500, but in the wake of Covid-19 that limit was increased 10-fold to $5,000.
To be precise, the Act says that if the item is acquired on or after 17 March 2020 and before 17 March 2021 then the limit is $5,000, and if purchased on or after 17 March 2021 then $1,000 is the limit.
We must stress that as a Property Manager we cannot offer accounting advice, but it is our opinion that this should be welcome news for investors needing to fit heat pumps, range hoods or any other item required to get their properties over the line with the Healthy Homes Standards (the deadline for which is 1 July 2021).
The relevant section of the Covid-19 Response Act can be found here.
Want someone else to manage the stress of getting your properties up to scratch for the Healthy Homes Standards? Contact Michelle on 0210 832 1516 / firstname.lastname@example.org to hear how Waikato Real Estate will get your property over the line.
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