Rental Property Tax Accounting
- Fast Turn-Around
- Streamlined Rental Tax Returns
- Fixed Fee Service
Rental Property Tax Accounting Specialists
We are specialists in investment property tax accounting services.
Streamlined Service
Fast Turn-Around
As long we have everything we need, your rental property financial accounts and tax returns will be filed promptly in twenty-one days.
Accurate, Compliant & Complete
We are Inland Revenue Tax Agents
Quick, easy, affordable & professional rental property tax compliance to help minimise tax on investment properties.
Fixed Fee Services
No Hidden Costs
We offer rental property tax accounting services at a fixed fee, so you know exactly what you're paying from day one.
For help with Investment and Rental Property Accounting & Tax
Talk to us today
Rental Client Testimonials
We have had the pleasure of working with Dee from Devine Accounting for nearly a decade, and we couldn't be happier with the exceptional service she provides.
Dee is an outstanding tax accountant who brings a calm and patient approach to her work. She takes the time to thoroughly explain all the intricacies of tax requirements for our rental property, ensuring we fully understand every detail.
Dee keeps up to date with all the latest regulations and keeps us well-informed of any changes that might impact us. Dee is proactive in letting us know what information she needs to complete our tax returns promptly.
Thanks to her diligence, we always meet the IRD deadlines without any stress. Dee's expertise and dedication have made a significant difference in our business and rental tax management.
We highly recommend her services to anyone seeking a knowledgeable and reliable tax accountant.
Rob and Monica
Client since April 2016
We’ve been using Devine Accounting for our rental property tax returns, and they’ve been fantastic.
The team is professional, efficient, and always makes the process simple and stress-free. Their attention to detail and clear communication gives us complete confidence that everything is handled correctly.
Highly recommended!
Pete Stewart
Client since November 2019
We have been with Dee since we started out and never looked back. Dee provides an outstanding service in a simplistic and thorough manner.
Appreciate your services and for making our life easier.
Raj and Family
Client since May 2016
I have a rental property in Hamilton and I live in Adelaide, Australia. Dee makes it easy for me to manage my tax accounting for the property. She is always helpful, friendly and approachable. It can be difficult managing a property from a different country but it's made much easier with Dee's help. I would recommend her to anyone wanting accurate and friendly advice.
Julie Bastoni
Client since May 2023
I’ve been using Devine Accounting for several years to prepare my rental tax returns. Dee provides a very efficient & professional service. I have full confidence in her & also appreciate her advice when needed.
Michelle Lemay
Client since June 2021
Devine Accounting has been doing my (rental) accounting and tax for the last 10 years. Dee and her team is second to none when it come to financial assistance, I have found the one on one meetings especially helpful when explaining the latest tax statement and benefits.
Highly recommend their services
Rinus Van Jaarsveld
Client since July 2018
When we were looking for an accountant, I found Devine Accounting on the internet. After meeting with Dee in person we decided to use her firm as she was very professional.
Dee does the tax returns for our rental house, we appreciate her handling all our personal tax affairs and her sound advice.
Any time we need help or advice Dee is available with her expert advice.
It is really a pleasure to have Dee as our accountant.
Danie and Sonica Jacobs
Client since May 2021
Complete Rental Property Tax Accounting Services & Ongoing Support
Accurate efficient accounting, timely tax compliance, effective tax minimisation from a helpful professional team providing fabulous client service.
We will help you plan property purchases by giving you advice on potential rental returns, profit forecasts, and budgets.
In addition - we will complete individual income tax returns, trading trust returns as well as self-employed and company accounting and tax returns.
Rental Property Services:
- Accounting Advice on purchasing a property
- Reviews of lease agreements
- Guidance on tax minimisation
- Periodic reviews to ensure returns are maximised
- Advice on ownership structuring & restructuring
- Income Tax Returns
- Financial Forecasts & Budgeting
- Annual Financial Statements
- Tax Reminder Notices
- Tax planning advice
- Non-Resident Tax Returns
- Correct IRD Compliance
What you can and cannot claim on your rental property tax returns
Expenses that can be deducted from rental income
You are entitled to deduct the following expenses from a rental property tax return:
- Legal fees for arranging finance to buy the property
- Legal fees for buying & selling a property, provided the total legal expenses equal or are less than NZD $10,000
- Interest payments & loan fees on money borrowed to finance your property
- Mortgage repayment insurance
- Accounting fees
- Agents' fees & commission relating to the rental of the property
- Advertising for tenants
- Depreciation of white ware & furniture
- Rates and insurance
- General repairs and maintenance
- Property inspection travel costs
- Vehicle and travel expenses
- Maintenance, repairs, gardening & pest control
Expenses that can't be deducted from rental income
The following expenses cannot be deducted from a rental property tax return:
- 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, even if you use the rental property to secure such a loan
- Capital improvement costs - any repairs and maintenance that surpass replacement and improve your property
- Private expenses - you cannot claim private expenses because these expenses don't produce taxable income and are for your own benefit.
Rental Property Tax Facts
GST on Residential Accommodation
Supplying residential accommodation in a dwelling is exempt from GST. However, accommodation in an commercial residential dwelling such as a boarding house may include GST.
GST on Boarding House Operations
If you operate a boarding house, the GST on the accommodation is calculated in two different ways:
- For the first 4 weeks, charge GST on the full value of accommodation
- After 4 weeks, charge GST only on 60% of the value of the domestic goods or services
4 Week rule for boarding houses
If at the beginning of the stay, there is an agreement that the stay will be for more than 4 weeks, GST must be charged on 60% of the value of domestic goods or services from the start, not after 4 weeks.
International Properties
If you’re a New Zealand tax resident your total income includes any rental income from properties and other sources in other countries. You will be able to claim deductions for expenses that relate to the rental income received in other countries and you may also be able to claim a credit for any tax paid in other countries on the rental income received.
Income from renting out properties in other countries, and other sources, is liable for income tax in New Zealand; therefore New Zealand tax residents must include this income in their tax return. This includes income from renting out land or buildings or income earned from having private boarders or flatmates living in your international properties.
If you have an international rental property, please contact us for more information.
Mixed Use Holiday Homes
If you have a mixed-use asset, that is an asset that is used for both private use and income earning use and it is also unused for 62 days or more in the tax year then it will be subject to new tax rules.
In a property taxation context these rules clearly apply to holiday homes, however there is an exemption for holiday homes that are used for long-term rental purposes.
What expenses can I claim on a holiday home?
The expenses you can claim in relation to a holiday home have changed and now fall into the three categories below:
Fully Deductible Expenses
Expenses, which are incurred solely in relation to the income earning activity of the asset are still fully deductible, such as advertising for tenants for your holiday home.
Non-Deductible Expenses
Expenditure that relates solely to private use of the asset is not deductible and can include things such as costs related to storing personal assets at the holiday home or local club memberships.
Apportioned Expenses
If any expenses relate to both income earning use and private use, they must be apportioned based on the actual time that the asset is used for income earning activities versus the time that it is used privately.
In the case of holiday homes, this would be the number of days that the holiday home was rented to third parties at market rates.
In addition, if your holiday home does not earn gross income of at least 2% of it’s ratable value, you may not be able to claim a deduction straightaway, instead you will be required to ‘quarantine’ the excess expenditure and carry it forward to a future year.
For help with Investment and Rental Property Accounting & Tax
Talk to us today
Like what you have read?
Contact Devine Accounting to book an initial consultation.