Rental Property – Tax Return
$229 (up to 3 properties)

If you have rental properties aside from your salary or wages, then you need to complete an IR3 tax return (Individual Tax Return).

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I have a couple of rental properties now, so (aside from my salary) I have other income, which means I have to file an IR3. I just completed the online form and was away laughing.

To get started, preparing a record of your income and expenses from your rental property is a good idea.

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What you will need:

  1. A scanned copy of your driver license, or (if you don’t have a licence) a scanned copy of the picture page of your passport. It is an IRD requirement that we correctly identify you.
  2. Your IRD number.
  3. A record of your income and expenses.

What you need to know:

What is classed as “rental income”?
This is simply money received by a landlord as rent from tenants who are renting a residential rental property. The only other income declared as rental income would be an insurance payout on a claim made for damage or loss to the rental property.

I live in the same house as my tenants. Is this different?
Yes, this is usually considered board, not rental income. Income received from boarders is only taxable if the amount received is above a certain threshold (set by the IRD). This threshold changes almost every year so to find whether you need to declare this income, please search for “boarders” at the IRD website.

What does it cost to file a tax return declaring rental income?
Our set fee per IR3 tax return is just $229 (including GST). This is applicable for people who own up to 3 rental properties either on an individual ownership basis or under a partnership where the rent is the only form of income (not for companies or LTCs).

What information do I need to provide?
You will be asked to provide a single figure of income and numerous figures breaking down your different expenses. We have tool tips positioned beside each expense to make sure you know what to look for. If you have any trouble, our team can help you, so just give us a call on 0800 18 18 19.

What if I’m not sure what information to use?
If you cannot locate or understand what figures from which documents you are required to provide when filling out our forms, simply give us a call. Our team has seen more rental applications than you could poke a stick at. They can talk you through the process, letting you know which documents produce the required figures and where you can locate these documents. There’s no extra charge for giving us a phone call so you have nothing to lose. We are happy to help.

What if I only rented my property for part of the year?
You are still required to declare the income you received during the time that you were renting the property. You can claim expenses for the period that the property was available to rent (from when you first advertise the property to when the property was no longer rented or advertised).

I spent more money on my property than I earned. Do I still need to file a return?
Yes you are still required to file the return. As you may have run your property at a loss, this could actually produce a tax refund! Many of our clients receive tax refunds due to owning a rental property.

I received a payout from the insurance company, from on a claim made on my rental property. Does this need to be included as income?
Yes, this does need to be added to the rental income. You can claim the insurance premiums paid each year as tax deductible expenses. As a result, any payout from the insurance company is then considered to be taxable income. It’s a two way street.

What if my property is jointly owned?
If you own the property jointly with someone else, the profit/loss needs to be split based on your percentage of individual ownership. Most commonly we see a husband/wife ownership model, where ownership is split 50/50.

Cost for up to 3 rental properties owned by an individual (single IR3 tax return) $229

Cost for up to 3 rental properties either owned by a partnership or jointly-owned (one IR7 and/or two IR3s) $458. Note that we will invoice $229 for each IR3 return in this instance.

Still have questions?

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