New Zealand Tax Agency Clarifies Interest Limitation Rules for Short-Stay Accommodation Property Loans

The New Zealand Inland Revenue June 2 issued Interpretation Statement No. IS 23/04, and accompanying Fact Sheet IS 23/04 FS, to clarify the application of interest limitation rules to loan interest associated with short-stay accommodations properties. The sheet and statement are intended for individuals and trustees. Topics covered include: 1) how the rules apply to different types of properties used for short-stay accommodations; 2) properties excluded from the rules, such as the primary residence of an owner or a trust beneficiary; 3) the 20-year exclusion from the rules for new build land; 4) the full or partial disallowance of interest ...