What sorts of things can I claim back on from IRD?
Question from Travis updated on 1st August 2008:
Our expert responded:
While I can understand that you may not be able to afford to pay for the services of an accountant, you've also just spent a serious amount of money on buying an asset that if accounted for properly, can give you excellent returns. Having said that, we would suggest you use an accountant at least for your first year. The accountant will prepare a depreciation schedule, rental income schedule and your tax return and ensure you claim all the expenses you are entitled to claim. Once setup, you could complete it yourself in the following years. However, this could be dangerous as you will not keep up to date with any tax changes which could mean penalties for you in the future that outweigh anything you might have spent on accounting fees. If you do want to complete the tax return yourself, IRD have a guide they publish called "Rental Income' IR264 which you can download from www.ird.govt.nz. It has a lot of useful information in it on what you can claim and the sorts of records you need to keep.
Kenina Court is a director of Acorn Solutions Limited, an accounting firm dedicated to working with clients to help them create wealth. She is an avid property investor, entrepreneur and seminar presenter on asset protection and wealth strategies.