Tax deductibility for rental

Question from Kylie updated on 26th April 2016:

I have been renting out my property while I have been travelling around NZ.

I know my rental will make a loss this year.

Am I able to off-set these losses again any personal NZ income that I have earned in 2015 to receive a tax refund?

I haven't set up a company for rental property as I only have the one property.

However, it is being privately managed by an rental agent.

Our expert Mark Withers responded:

Yes. All the costs associated with holding the property throughout the period it is available for rent are tax deductible against the rental income. This will include interest on the debt to buy it, rates, insurance, mangers fees and repairs and maintenance. If these costs exceed the rental income earned a tax loss is claimable by the owner of the property who has derived the rental income.

Mark Withers and his team at Withers Tsang & Co specialise in advising on property related transactions, valuation and restructure services and tax planning.

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