"We don't just write history,
we help clients create it."

Accountants & Business Development Advisers

Phone: (06) 355 4647

Rental Advice

Get The Most Out Of Your Rental Investment

If you own a rental property you will need advice and information on the current rental property market.

It is important that you claim all that you are entitled to. From experience we know that most property investors are not aware what they can claim.

Are you claiming all the deductions you are entitled to? The following are 19 classic examples that people are not aware they may be able to claim:

  • Mileage on Car - Mileage of your car, for any trip that is related to generating income from your rental property i.e. trips to and from the Rental Property, Bank (to check the rent, arrange loans) Lawyer, and Accountant, showing tenants through, trips to the Hardware Store, Tenancy Services and Tribunal etc
  • Home Office & Telephone - A percentage of the costs on your home, power, gas and telephone rental. All business toll calls
  • Lawyers Fees - Can be claimed on the Sale & Purchase of a property and arranging finance
  • Bank Fees - All Loan Application Fees and monthly Bank Fees
  • LTC Companies - You may be able to claim interest on Mortgages you cannot presently claim
  • Depreciation - Chattels can be separated from the Purchase Price and depreciated at much higher rates of 7.5% – 30%, instead of 0% on Buildings
  • Family Support (for years prior to 1/04/11) - With Rental Losses these can even apply to those on Salaries $90,000 to $150,000 if you have Kids, paid out weekly
  • Computer - Can be depreciated at up to 50% a year
  • Debt Collection Costs - All Debt Collection Fees and Tribunal/Court Costs
  • Kids' Wages - For mowing the lawns and helping to clean up the property
  • Repairs & Maintenance - Carpet Cleaning, Painting, Plumbing, Builders, Lawn Mowing, Gardening
  • Mortgage Protection / Life Insurance
  • Depreciation Clawback - Real Estate and Legal Fees, Advertising costs, Alterations/Improvements and Land Value changes – can all have an effect on the total amount of Depreciation Clawback taxable
  • House & Contents Insurance - Check whether these cover Stoves, Carpets, Curtains & Tenants damage including loss of rent
  • IR23BS - Why wait until after the Tax Year for your Tax Refund? Why not weekly/fortnightly?
  • Ownership - Who should own the property i.e. who has the higher tax rate?
  • Non-Resident Taxes & AIL - If you have a mortgage overseas on your rental property you will have to pay NRWT (Non-Resident Withholding Tax) on the interest payments. AIL will cut NRWT from 10% to 2 %
  • Double Dip Losses - For Rental losses from Australian rentals, these can be claimed in New Zealand and Australia. The losses in Australia can be used to offset any capital gains taxes in Australia
  • Previous Tax Years - If you have not claimed any of the above in any previous tax years, you can request a reassessment from the IRD

If you just have one or more rental properties we can provide you with a Rental Folder to store all paperwork in. This has been setup to ensure that all your paperwork will meet IRD audit standards. This Rental Folder is an easy way to keep all paperwork organised and minimise your time requirements when it comes to completing tax returns.

 

Comments or questions are welcome.

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