APIA Blog

RSS Feed

Is remedial insulation deductible?

Monday, March 25, 2019

IMG CREDIT: UNSPLASH

This week's question comes from Ron (paraphrased): 

What is the tax treatment for remedial insulation on a rental property where existing insulation is going to be topped up (i.e. part repair part improvement)?

Mark Withers from Withers Tsang kindly responds below:

The government has not assisted the push for better insulation of Kiwi homes by failing to clarify the capital/revenue deduction position on insulation upgrades. In most cases, if there is no insulation whatsoever, this would generally be a capital improvement to the building and non-deductible and non-depreciable. However, the step to take when in determining any capital improvement question with a building is to “ identify the asset” here, the asset is the building and the insulation is generally attached to the building so where there is existing insulation and work is done to maintain this, it would seem reasonable to deduct this as general building maintenance as the insulation is not a distinct identifiable asset on its own account.

Note that this answer is general in nature and not intended as professional advice. 

Do you have any tenancy related questions? Write to us at admin@apia.org.nz or hit us up on our social channels here and here

 

Recent Posts


Tags

tenancy services structure rta tenancy tribunal bond clnz personal growth letting data security holiday house winz bad tenant ocr ring-fencing skill shortage airbnb housing bubble worksafe relationship smoke alarm cat damage Editor's Choice property heating off the plan capital gain fixed-term tenancy investment strategy beginner investor Kris Pedersen Mortgages and Insurance election 2017 interest rates Gluckman p lab sale and purchas education sublease market rent speculator nzpif Sponsored post RTAA 2019 Investor story meth contamination warm up new zealand initio short-term rental landlord property cycle bond form interest only trespass property management finance wins insulation house prices return reserve bank Market report principal and interest Property (Relationships) Act rent increase extractor fan lvr property value heater minor dwelling government TCIT Must knows parry v inglis Landlording buying rules DTI buyer's agent financial advisers act trust insurance CCC productivity HHS negotiation LIM Q&A trademe tenancy issues boarding house television termination legal gluckman report subdivision Standards New Zealand maintenance cash-flow RBNZ positive cash flow meth rent asbestos banking shower dome auckland wealth creation rental market ask an expert income building auckland council buying CoreLogic Holler HHGA tax business first home buying anz Jeff Bezos advice renovation watercare warren buffett twg report rta reform partners privacy equity Investment tip development scotney williams Guest blog Tribunal case study robert kiyosaki water bill tenant How to market unitary plan cgt housing affordability management inspection rental wof investor ventilation letting fee debt enforcement mortgage rent arrears ird property maintenance Must know Question and answer sale and purchase HSWA

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited