[leosus]

Is owning a home in NZ a tax benefit/ write off like in the US?? Just wondering...

[khhill]

I've been trying to figure out the same thing. The best answer that I've been able to find so far, is that you do not get to write off interest on your primary residence, like you can in the US, but you get similar tax benefits on investment properties (as long as it a separate building from your residence), ie. interest and depreciation write offs.

I'm certainly not a tax expert, and have not purchased yet, but that is my understanding.

PS: no capital gains tax when you sell in NZ! :raebanana

[tigerlily]

I understand that if you earn income off your house, like having an extra apartment in the basement or something, that you can then deduct your interest, as you normally would on any house in the US. Not sure if just working from home/home office would qualify you for the same.

[foolsgold99]

In basic terms no, but if you run a business from home, you can claim tax relief on a percentage of the interest, plus claim for depreciation costs on the house. You can also write the losses from your "business" off against your personal tax bill from your job.

In order for the tax man to be ok with this, you just need a business plan that shows you plan to make a profit at some point in the future

[Diny]

We own 2 houses here in NZ, our own residence and another that we rent out. We can not claim any tax relief on the house we live in but we do get tax relief on our rental.

Diny

[leosus]

Thanks Diny.. Any incentives to buy houses (to actually live in), other than the obvious benefits of owning your own home?