Call Northland Accounting & Taxation on 09 437 5499
Spend more time doing what you love while we handle the accounting

RENTAL PROPERTIES

We offer property accounting at affordable rates.  With our knowledge and expertise we ensure all your rental property accounting is taken care of.  We have set fees so our prices are fixed with no hidden costs.  Less stress for you with a personal friendly touch from us.

 

WHAT CAN YOU CLAIM

The following expenses can be deducted from your rental income:

  • Rates and insurance
  • Interest paid on money borrowed to finance your property
  • Agents fees and commission relating to the rental of the property
  • Repairs and maintenance (except if they substantially improve the property)
  • Motor vehicle and travel expenses
  • Legal fees for arranging the mortgage or finance to buy the property
  • Legal fees for buying and selling a property can be deducted.
    This is provided your total legal expenses for the income year, including the fees associated with buying and selling a property, are equal to or less than $10,000.
  • Mortgage repayment insurance
  • Accounting fees for the preparation of accounts (We will add this in)

 

WHAT CAN’T YOU CLAIM

Capital or private expenses can’t be deducted from your rental income. Capital expenses are costs you incur to buy or increase the value of a capital asset. Private expenses are incurred for your own benefit and are not connected with producing taxable income.

The following are non-deductible expenses:

  • The purchase price of a rental property
  • The capital part of any mortgage repayment(s)
  • Interest on money which you borrow for some purpose other than financing the rental property, even if you use the rental property to secure such a loan
  • Any repairs and maintenance that go beyond replacement and are in fact improvements to the property
  • Real estate agent’s fees incurred as part of buying or selling the property
  • The cost of making any additions or improvements to the property (Capital Improvements).
  • Depreciation on the buildings from the 2011-2012 income year.