• F.B.I

Allan McNeill- 10 Minutes

A little bit about me and the firm!


AllanMcNeill was part of Cooper & Lybrand, PWC etc. and went out on our own in 2000 as we wanted to look after the regions.


We have two offices – Manchester St Feilding, Ruahine Street Palmerston North

A 5 Partner firm, with 32 Staff of various ages and qualifications


Angelina –Partner since 2007 – 12 years

Marton born and bred,

Married, 16 yr old son who loves rugby. Before Brooklyn, Tony and I had ridden the round Taupo cycle challenge about 6 times, did the coast to coast together, and I did the Taupo iron man in 2002. I use to ride as a teenager and got back into it about 11 years ago and now event and hunt the hares. We live in Bulls on 20 acres.


A bit about Accounting and Tax


Residential Loss Ring Fencing

From 1 April 2019 there are new rules which restrict the use of expenditure arising from loss-making residential investment properties being offset against other types of income to reduce the overall tax liability. Residential Loss Ring Fencing.

Where there is more than one property you can offset losses from one rental property against income from other rental properties –Portfolio basis – default method

Any excess Rental losses are carried forward and generally can only be used to offset against other rental income from future years or income on the sale of rental property to the extent of reducing the taxable gain on the sale to nil.

That is for a property which is caught by the intention test or 5 year bright-line test resulting in a capital profit on sale being taxable, the ring fenced rental losses can off-set the profit to nil if sufficient.

Where the entire portfolio has been disposed of and all disposals are taxable disposals, the excess deductions may be released from ring-fencing to be used against any other income.


Where a sale of a property is not taxable the rental deductions carried forward would be tainted and cannot be offset against other income and would remain ring-fenced for future rental properties.


Property by Property approach here if property A makes a profit, and property B incurs a loss, the owner must pay tax on the property A profit, and the losses from property B are carried forward and may be used only against future income from property B. If a property is sold and the sale is taxable, any ring-fenced deductions in excess of the income from the sale could be released and used against other income. If the sale is not taxable losses are Tainted and cant be used against other income and are ring-fenced for future rental properties.

75 views