NZ Rental Property Tax Experts for Smart Investors

Common deductible expenses include:

• Property management fees
• Rates
• Insurance
• Mortgage interest
• Motor vehicle expenses (at the IRD public service rate)
• Depreciation on chattels
• And more, depending on your specific situation

Yes, you do. Your net rental profit (income after expenses) is added to your other taxable income (e.g., salary or wages) and taxed at your marginal tax rate.

If a rental property is jointly owned, the income and expenses are generally split 50/50, and each owner declares their share in their personal tax return. Each person’s share is taxed at their respective marginal tax rate.

To stay compliant and ensure you claim all deductions:

• Set up a separate bank account for rental income and expenses
• Keep receipts and invoices for all large purchases
• Retain records for at least seven years, as required by the IRD

No, you can file your rental income tax return yourself through the IRD. However, using an accountant has several benefits:

• Ensures you maximise all eligible deductions
• Provides peace of mind by keeping you compliant and avoiding tax penalties or interest from the IRD
• Handles all IRD correspondence on your behalf
• Saves you time and hassle, allowing you to focus on managing your investment