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IR3NR Question 19 New Zealand rents

If you received any income from rents between 1 April 2018 and 31 March 2019, show it at Question 19.

Prepare a summary of the details for each rental property. You can use either:

  • a Rental income (IR3R) form, or

  • your own summary.

If you prepare your own summary, Inland Revenue need the following details:

  • the address of the rented property

  • the number of months it was available for renting

  • total rents before expenses

  • rates

  • insurance

  • interest

  • agents’ collection fees

  • repairs and maintenance

  • depreciation and contents

  • total rents after expenses (your net rents).

These details are explained fully in the guide Rental income (IR 264).

Ongoing expenses

Claim ongoing expenses, such as rates, insurance and interest, in proportion to the number of months the property was available for renting. For example, if the property was available for 10 months, you can claim 10/12ths of these expenses.

Repairs and maintenance

You can claim property and plant repairs and maintenance but not additions or improvements—these may be depreciated. If your property has been classed as a leaky home please write to Inland Revenue, and include the circumstance of the leaky building, and the expense you wish to claim. Note that depreciation on most buildings is no longer claimable. This generally covers buildings with an estimated useful life of 50 years or more.

NRWT

Where interest is claimed as an expense and is paid to an overseas lender on a mortgage over land in New Zealand, it must have NRWT deducted and paid to Inland Revenue—unless the Malaysia or Singapore double tax agreements apply. See the NRWT payer’s guide (IR291) for more help.

What to show in your return

Add up the net rent (rent after expenses) and print the total in Box 19. Staple the IR3R or your summary to the top of page 3 of your IR3NR. Keep your receipts with your records in case Inland Revenue ask to see them later.