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NZ Investment Property Changes

With the recent announcement of proposed changes to property investments, SBA have compiled the following information to help you figure things out. We have included a breakdown on the changes to interest deductibility and the bright line test.  More importantly we have created a simple property tax calculator to help you analyse the impact of these tax changes for you.

Maximise your rental property accounting

Our Rental Accounting service is for property investors, whether you have 1 or 10 properties. With our specialist rental accounting knowledge and expertise, we will help you maximise your rental property returns. Your local SBA can manage your rental property financials, keep track of expenses and income, helping you claim more and pay less tax.

Key benefits of rental accounting

Set up rental property/entity structures

Manage your tax and produce end-of-year financials

Help you to claim the most to reduce tax

Keep track of your rental income and expenses using Xero

Rental property expenses

As an investor, you’re probably wondering which expenses can and cannot be claimed. Check out our useful Property Expense Guide below by clicking on + below.

Expenses that can be claimed
  • Rates and insurance.
  • The way interest is deductible for residential property investment is changing, please refer to our guide here on how to decide the deductibility of interest paid: https://sba.co.nz/nz-investment-property-changes/
  • 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 from the 2010 income year and beyond.
  • Mortgage repayment insurance.
  • Accounting fees for the preparation of accounts.
  • Depreciation on the building prior to the 2011-2012 income year.
  • An allowance for a home office if you manage the properties yourself.
Expenses that cannot be claimed:
  • The purchase price of a rental property.
  • The capital part of any mortgage repayment(s) – “principal”.
  • 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.
  • 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.
  • Additions or improvements to the property.
  • Depreciation on the building after the 2011-2012 income year.

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