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Property & Rentals

Property Tax Specialists — Because Every Dollar of Deduction Matters

From your first rental to a multi-property portfolio, we make sure you're in the right structure, claiming every deduction, and never caught off guard by changing rules.

Why Property Needs a Specialist

NZ property tax is a minefield of changing legislation. Here's what a generalist accountant typically misses.

Chattel Depreciation

Building depreciation is 0% from April 2011 — but chattels (carpets, drapes, heat pumps, appliances, blinds, light fittings) ARE still depreciable. A professional chattel valuation costs $400–500 but can unlock $3,000–8,000+ in year-one deductions. Most generalist accountants either miss this entirely or claim nominal amounts.

Interest Deductibility

Interest on residential rental property loans is now fully deductible again from 1 April 2025 for most properties. New builds have different treatment. The rules were a moving target for years — phased limitation, then restoration. Getting this right means reviewing your historical claims and ensuring you're now claiming the full amount. We track this per property so nothing is missed.

Bright-Line Rule

10 years for properties acquired 27 March 2021 – 30 June 2024. 2 years for properties acquired from 1 July 2024. New builds have different rules. We document acquisition dates and flag exposure before you sell.

Entity Structure

LTC lets losses flow to the owner. Company retains profits at 28%. Trust has different distribution and tax implications (39% trustee rate). Informal partnerships have their own filing requirements. Getting this right at purchase prevents expensive restructuring later.

Loss Ring-Fencing

Rental losses can only be offset against other rental income (not salary/wages), unless certain exceptions apply. This changed the maths on which structure to use — and many investors are still in the wrong one.

Property Structure Setup

Get the structure right before settlement — not after.

Property Structure Setup

One-off engagement for new property purchases

$1,500+GST
Pre-purchase structuring advice (LTC vs company vs trust vs individual vs informal partnership)
Entity formation and IRD registrations
Xero setup with property-specific chart of accounts
Bank feeds and transaction coding setup
Chattel valuation coordination (we arrange the valuation — you claim deductions from day one)
Depreciation schedule setup
Interest deductibility assessment
Bright-line rule assessment and documentation

Annual Rental Compliance

Fixed annual fees based on portfolio size. Everything you need to stay compliant and maximise deductions.

PortfolioAnnual FeeMonthly
1 property$990+GST~$83/mo
2–3 properties$1,490+GST~$124/mo
4–6 properties$1,990+GST~$166/mo
7+ propertiesCustom quote

What's Included in Every Tier

Annual financial statements (trust/company/LTC/individual as applicable)
Income tax return (IR3/IR4/IR6/IR7)
Rental income and expense schedules per property
Chattel depreciation calculations (properly valued, not nominal)
Interest deductibility tracking per property
IRD correspondence
Bright-line monitoring and alerts
Annual property tax position review

Property Tax Health Check

We'll find the deductions your current accountant is missing.

$500+GST

One-off

Review of existing structure and returns (last 2 years)
Chattel valuation gap analysis
Interest deductibility review under current rules
Bright-line exposure assessment per property
Restructuring recommendations
Written report with estimated savings

Short-Stay Accommodation — Airbnb, Bookabach & Holiday Rentals

One of the most complex areas of NZ property tax. The rules depend on how many days the property is rented, how many days it's used privately, and whether you're GST registered.

Mixed-Use Asset Rules

  • If a property is used both privately and for short-stay rental, the mixed-use asset (MUA) rules may apply
  • Under MUA rules, expenses are apportioned across three categories: income-earning days, private days, and vacant days
  • The formula determines how much of your expenses are deductible — it's not a simple private/business split
  • Vacant days (when the property is available but not booked) are treated differently under MUA rules vs standard rules
  • Close companies providing short-stay accommodation have specific rules (IRD QWBA published 2025)

Standard vs Mixed-Use Asset — Which Applies?

  • If the property is rented for 62 or more days AND private use is 62 or fewer days: standard rules apply (full deduction of expenses proportional to rental use)
  • If the property doesn't meet those thresholds: mixed-use asset rules apply (more complex apportionment including vacant days)
  • If you rent out rooms in your own home: the short-stay standard-cost method may apply ($50/night for a room, simplified approach)

GST for Short-Stay Operators

  • If your total taxable supplies (including short-stay income) exceed $60,000 in any 12-month period, you MUST register for GST
  • Once registered, you charge 15% GST on accommodation and can claim GST on expenses
  • GST registration on a property you also use privately creates complex apportionment issues — particularly on sale
  • Recent changes allow GST-registered persons to elect to treat dwellings with mainly private/exempt use as not subject to GST on disposal — a critical planning point
  • Platform-collected GST (Airbnb marketplace rules) — you need to understand how this interacts with your own GST obligations

What We Do for Short-Stay Operators

Determine whether standard or mixed-use asset rules apply to your property
Calculate the correct expense apportionment (including the MUA formula if applicable)
GST registration advice and ongoing GST return management
Manage the interaction between income tax deductions and GST claims
Bright-line rule monitoring (short-stay properties are still subject to bright-line)
Platform revenue reconciliation (Airbnb, Bookabach, Booking.com)
Help you understand whether incorporating the activity or running through a trust makes sense

Short-Stay Setup

For new short-stay accommodation operators

$1,200+GST

One-off

Assessment of whether standard or MUA rules apply
GST registration advice and setup (if applicable)
Structure advice (personal vs company vs trust)
Xero setup for short-stay income tracking
Platform integration guidance
Depreciation schedule for furnished properties (often higher chattel values than standard rentals)

Industries We Serve

This service is popular with investors in these sectors.

Book a Property Tax Health Check

Our $500+GST Property Tax Health Check reviews your structure, returns, chattel valuations, interest deductibility, and bright-line exposure — with a written report and estimated savings.

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