- 28 February, 2017
- PROPERTY MANAGEMENT
- Investment, Tax, Depreciation, Rental Property
Rule number one in record keeping is to keep all your paperwork and organise it so you can retrieve any documents easily when needed.
Even if you use a tax agent to prepare your tax return, it is important that you keep copies of documents and records relating to:
- the costs incurred when you purchase a property;
- the rental income you receive;
- expenses you incur while owning the property;
- the costs associated with selling the property
You may need to keep some of these records for longer than seven years, depending on how long you own the property as it will help you work out the capital gain or loss on your investment correctly, and ensure you do not pay more tax than you need to when you sell.
What can you claim? Please check with your accountant regarding allowable rental property deductions. The taxation office in New Zealand has several articles of reference regarding Rental Properties.
New Zealand Inland Revenue (Te Tari Taake) http://www.ird.govt.nz/toii/property/information/