TAX RETURN FAQ

COMMON TAX RETURN FREQUENTLY ASKED QUESTIONS

Q: My rental is running at a loss. Why don’t I get a tax refund anymore?
A: You can thank the government for that. They changed the rules so that losses from rental residential property, are “ring-fenced”. That means they can only be offset against profits from the same kind of income.  Read more here. What do do about it? Read about our recommended strategies here.

Q: Why should I go with EpsomTax.com?
A: Read our convincing explanation here and see the benefits of using a genuine property accountant here

Q: What exactly am I paying for?
A: It depends what you have. If, like most people, you have an LTC, then the Companies Act specifies that the company must have financial statements that are legally compliant, and Inland Revenue insist on tax returns being filed (IR7, IR7L and IR10 are what they are called). Then they also insist on personal tax returns being filed (IR3 is a personal tax return, IR3R if you are non-resident, and and IR526 is a donations rebate return)

If you have a partnership or a trust or a standard company, the general idea is similar. First we have to compile all your disparate bits of info into a legally compliant format (financial statements) and then we use these to produce tax returns.

Of course, our fees also include advice, queries, forms, documentation etc, so that’s built in to the price too. You won’t get a nasty surprise bill from us after you ring or email with a question. Unlike other accountants.

Q: Why do I need to complete a tax questionnaire  every year?
A: This is basically to cover your back. It proves that we and you have all asked/answered the right questions, if anyone ever asks. Could come in handy if you are trying to prove your innocence to IRD.  The checklist is to help you gather your info, as there is quite a list, and it is easy to get lost.  You can go thru the checklist and check things off, one by one.  

Q: What do my statements mean?
Please see this page for our super handy guide on how to read financial statements.​ And this one!

MISTAKES

Q: Do you ever make mistakes?
A: Yes. Where you have imperfect people, mistakes and errors cannot be fully eliminated. However, when the error is discovered, we will do our best to put it right and compensate you for the inconvenience.

SOFTWARE

Q: What is Xero?
A: We explain here… with pictures too!

Q: How do I complete the online tax questionnaire?
A: Please see this article

Q: How do I download loan transactions from my bank?
A: See here

PROCESS QUESTIONS

Please see these links for more information:

• What’s the process for my tax returns?
• Tax returns for new investors
• Tax return questionnaires

TAX

Q: Why does the address on my tax assessment say Howick?
A: That’s our IRD-approved tax agency mailing address

​​Q: How do I complete the online tax questionnaire?
A: Please see this article

Q: How do I download loan transactions from my bank?
A: See here

Q: I have some questions about my personal tax return.
A: See our growing list of questions here

Q: What’s the process for getting my tax returns done?
A: We explain it here

Q: Can I claim my insurance on my tax return?
A: Maybe. See this article… and this one.

Q: How much tax will I get back?
A: Visit this link for more information

Q: How long will it take?
A: Get an overview here

Q: I didn’t receive any income; do I have to file a tax return?
​A: Maybe.  See here for more details.

Q: What’s the AECT/Entrust Dividend?
A: See here or here

Q: What happens if I make a loss?
A: We explain it here

Q: What records do I need to keep for my rental property?
A: See this blog article

Q: Where do I find your forms and fine print?
A: See here for policies; here for forms

FINANCIAL STATEMENTS

Q: I can’t understand my Financial Statements!
A: Fear not. We explain them in simple terms here

Q: What is a Solvency Resolution?
A: See here 

VIDEOS

Q: What is depreciation?
A: See this post

Q: Have IRD published any videos on rental income?
A: Sure have. Watch this

Q: What expenses can I claim?
A: See this video, produced by Inland Revenue.

FORMS/LINKS

Annual Tax Questionnaire: 

• For all clients, whether annual tax or GST questionnaire, simply click here 

OTHER

Q: My question isn’t here!
A: Visit the FAQ page