Skip to main content

Ngā tangohanga whakapaunga reti Rental expense deductions

Back

You can deduct expenses from your rental income you include on tax returns. Not all rental expenses can be deducted. The expenses must relate to income-earning use, not private use.

Expenses you can deduct

The expenses you can deduct from your rental income are:

  • the cost of insuring your rental property and the rates for the property
  • payments to agents who collect rent, maintain your rental, or find tenants for you
  • fees paid to an accountant for managing accounts, preparing tax returns and advice.
  • repair and maintenance costs
  • arranging a mortgage to finance the rental property
  • drawing up a tenancy agreement
  • getting a valuation required to get a mortgage. Not insurance valuations
  • taking legal action to recover unpaid rent
  • evicting a tenant
  • mortgage repayment insurance
  • depreciation on capital expenses
  • utilities, insurance or rates portioned for rental use
  • travel expenses for travelling to inspect your property or to do repairs
  • legal fees involved in buying a rental property, as long as the expense is $10,000 or less.

You can also deduct interest on money you have borrowed to buy your rental property. You cannot deduct this if you have used some of the money:

  • for something else
  • to top up the mortgage for another purpose.