Everything you need to know about working with a rental accountant and bookkeeping for rental properties
When it comes to rental property accounting, you need to file your rental income accurately so you fulfill your legal obligations and keep on the right side of Inland Revenue. Contact My Tax Rentals now if you have a question that is not addressed on this page. If you are ready to submit your application, you can use our easy online form now.
My Tax Rentals does not offer investment property advice. We file residential property tax returns and overseas rental property tax returns only. As an online rental accountant, we can work with clients across New Zealand.
My Tax Rentals provide rental property tax returns and overseas property tax returns for non-tax residents of New Zealand.
With decades of experience in rental property accounting in NZ, My Tax Rentals provide an online service where clients from Auckland, Christchurch, Dunedin and throughout New Zealand can submit an application without having to visit us in person. This means we pass those savings on to you.
Yes. You can browse feedback about our affordable tax services here. We are proud our customers know exactly where they stand when paying tax on their rental income.
During business hours, My Tax Rentals provide phone and email support throughout your application.
My Tax Rentals will confirm your application within one business day. As long as you have provided us with everything we need, your return will be filed promptly in seven days.
No. You cannot claim private expenses because these expenses don’t produce taxable income and are for your own benefit.
You are entitled to deduct the following expenses:
- Legal fees for arranging finance to buy the property
- Legal fees for buying a property, provided the total legal expenses equal or are less than NZD $10,000
- Interest paid on money borrowed to finance your property
- Accounting fees
- Agents’ fees relating to the rental of the property
- Rates and insurance
- General repairs and maintenance
- Vehicle and travel expenses
The following expenses cannot be deducted:
- Rental property purchase price
- Real estate agent’s fees incurred as part of buying or selling the property
- The capital part of any mortgage repayment/repayments
- Interest on money borrowed for another purpose besides financing of the rental property
- Capital improvement costs - any repairs and maintenance that surpass replacement and ‘improve’ your property
- Doing up a property to get it ready to rent out
A new build is a self-contained residence that is issued a Code Compliance Certificate (CCC) under section 95 of the Building Act 2004, confirming the residence was added to the land on or after 27 March 2020.
A new build is also a self-contained residence acquired off the plans that receives its CCC on or after 27 March 2020 confirming it has been added to the land.
A place only qualifies as a new build if it is self-contained. This means the new build would need to contain its own cooking and bathroom facilities and have its own entrance. The entrance could be from a shared access way, for example, a hallway shared by a block of flats in the same building.
A new build does not have to be made of new material or constructed onsite, so it can include modular and relocated homes.
The following are examples of new builds where a self-contained dwelling is:
- added to bare land
- added to land that has an existing dwelling on it, whether stand-alone or attached (apportionment will be required)
- or multiple self-contained dwellings replacing an existing dwelling
- converted from a commercial premises or a hotel/motel.
- part of a dwelling converted from a single dwelling
In addition, an existing property can qualify as a new build if it was:
- previously on the earthquake-prone buildings register, but has been remediated and then removed from the register on or after 27 March 2020, or
- has been at least 75% re-clad because of weathertightness issues and received a CCC for the re-clad on or after 27 March 2020.
The new build exemption generally starts from the date a CCC is issued for a new build.
For new builds purchased off the plan, the exemption starts from the date you entered into an agreement to purchase it.
For motel and hotel conversions, the new build exemption starts from the date the local authority or building consent authority records indicate the conversion was complete.
The exemption expires 20 years after a new build is issued its CCC or when the new build ceases to be on the land (for example, it is demolished or removed), whichever is earlier.
Where a new build is acquired off the plans and before its CCC is issued, the 20-year fixed period runs from the date of the CCC. Special rules also apply for hotel/motel conversions, and for new builds that receive their CCC after a significant delay.
The exemption applies to anyone who owns the new build within this 20-year fixed period, and the timing of the exemption does not reset when the property is sold.
If your rental property is classed as a new build, then you are able to claim all mortgage interest incurred in buying the property. The new interest deductibility rules won’t apply.
How can we help?
Contact My Tax Rentals if you need clarification on any information provided on this page or view our terms & conditions for more details. Alternatively, you can apply online now.
