Tax Time for Landlords - What To Get Together Before You Meet Your Accountant
New Zealand’s tax year ended 31 March. Which means right now is when most landlords are either scrambling to pull their records together, or handing a clean file to their accountant and getting it done in an afternoon. The difference between those two outcomes comes down to one thing: preparation.
Quick tip: Send everything in one hit. Not in five emails over three weeks. Your accountant will work faster, ask fewer follow-up questions, and your bill will reflect it.
Here’s exactly what to gather, what you’re probably forgetting, and how to make it as painless as possible.
What your accountant actually needs
We asked a Christchurch accountant who works with landlords what makes year-end easiest. The answer was simple - get everything together, all at once. From experience, the landlords who do this in one hit save time, money, and a lot of back-and-forth.
Your core records
End-of-year statement from your property manager
Bank statements (if your rental income isn’t tracked in Xero)
Annual loan summary from your bank
Income to include
Rent received across 12 months
Bond money received or refunded
Insurance payouts (rent loss or damage)
Break lease payments or tenant reimbursements
Property activity
Any vacant periods during the year
Changes in ownership (purchases or sales)
Deductible expenses
Rates and insurance
Body corporate levies
Water rates (if owner-paid)
Repairs and maintenance
Cleaning, gardening, rubbish removal
Power, internet, or gas (if owner-paid)
Legal and accounting fees (related to the rental)
Travel costs (inspections, maintenance, tenant viewings)
Property management fees
Other details
Assets purchased (appliances, curtains, chattels)
Any expenses paid privately, not through your rental account
The deductions landlords most often forget
Beyond the obvious, there are five categories of legitimate deductions that consistently go unclaimed:
Mileage to property visits - every trip to the property - inspection, maintenance check, tenant handover - is deductible. Most landlords don’t track it. Over a year, this is could be $400-$800.
Software and subscriptions - property management software, accounting tools, document storage - if it’s used for the rental, the proportional cost is deductible.
Healthy Homes assessment fees - the cost of getting your property assessed or certified is a legitimate expense.
Last year’s accountant fees - accounting fees related to your rental are deductible in the year you pay them, which means last year’s invoice should be in this year’s file.
Proportional home-office costs - if you manage your own rental and do admin from home, a proportional share of home-office costs (power, internet) may be claimable. Ask your accountant.
Stacked together, $1,500-$2,500 of additional deductions per year is common for landlords who track these properly.
Interest deductibility in 2026 - where things stand
Mortgage interest deductibility for residential rental properties has been progressively restored following rule changes that began phasing in from April 2024. For the 2025–26 tax year, most landlords can deduct 100% of their mortgage interest on properties acquired before 27 March 2021. Properties acquired on or after that date have their own transitional rules.
This is a meaningful change for many investors, but the specifics depend on your acquisition date and loan structure. Confirm the applicable rules with your accountant, and make sure your full annual loan summary is in the file.
Depreciation - when it’s worth claiming
Residential buildings themselves are not depreciable in New Zealand. But chattels, including appliances, curtains, carpet, heat pumps, and other moveable items, may be, depending on the item and its cost.
If you’ve purchased new appliances or made significant fitout changes during the year, bring this list to your accountant. A chattel valuation at the start of a tenancy can also identify depreciation your accountant can apply going forward.
Capital improvements, things that extend the property’s life or add to its value, are treated differently from repairs and maintenance. If you’re unsure which category an expense falls into, flag it separately and let your accountant make the call.
What the IR will actually ask for if you’re audited
Rental income is a category the IR scrutinises. If you’re ever reviewed, they’ll want to see:
Evidence that income claimed matches what was actually received (bank statements, tenancy records)
Receipts or invoices for every expense claimed
Evidence that expenses relate to the rental property, not private use
A clear distinction between repairs/maintenance and capital improvements
Mileage logs if travel is claimed
The simplest way to be audit-ready is to run everything through a dedicated bank account for the rental, and keep a digital folder of receipts updated monthly.
The one-hour approach
Providing everything in one go helps your accountant work more efficiently, reduces follow-up questions, and keeps your accounting costs down. Here’s how to do it:
Block out an hour this week
Work through the checklist above
Pull everything into a single folder (or send it through in one email)
Flag anything you’re unsure about separately, with a note
How Birds Nest helps at tax time
Every Birds Nest managed property comes with an annual financial report, rent received vs. budgeted, all expenses categorised by IR-friendly groupings, maintenance spend trended against previous years, and a summary table you can hand straight to your accountant. Contact us today if you’d like to know more.
