We are specialists in investment property tax accounting services.
14 Day Turn-Around
As long we have everything we need, your rental property financial accounts and tax returns will be filed promptly in fourteen days.
We are Inland Revenue Tax Agents
Quick, easy, affordable & professional rental property tax compliance to help minimise tax on investment properties.
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.
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.
You are entitled to deduct the following expenses from a rental property tax return:
The following expenses cannot be deducted from a rental property tax return:
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.
If you operate a boarding house, the GST on the accommodation is calculated in two different ways:
4 Week rule for boarding houses
If at the begining 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.
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.
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.
The expenses you can claim in relation to a holiday home have changed and now fall into the three categories below:
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.
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.
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.
Contact Devine Accounting to book an initial consultation.