Te tātai utunga ina kāore koe e noho ana i te whare rēti, engari he wā anō ka whakamahia tūmataititia Working out expenses when you do not live in the property but sometimes use it privately

This is what you've spent only to earn rental income, such as advertising.

These are your total shared rental expenses for the year.

This is the area of the room or rooms your tenants or guests cannot use.

For example, one room is 20m². You use it to store private items and it's not available to guests.

This is your shared use apportionment.

In our example, the area only guests can use is 120m². This is total property area (140m²) minus the area guests cannot use (20m²).

You then work out the percentage you can deduct in the following way:

Divide the area guests can use by the total property area (120 divided by 140). Convert the amount to a percentage. In this example you can deduct 86% of the property's expenses.

Multiply your total shared expenses by the shared use apportionment. This is your shared rental expense total you can deduct.

Add the fully deductible expenses to your total shared expenses.

This is your total rental expenses. 

This is your total income-earning use days. For example, your property is rented or available to rent 300 days in the year.

You’ll need to keep records for your property for us to see it's available for rent.

Rental expense records

For example, 300 divided by 365. Make the result a percentage. In our example divided usage is 82%.

For example 82% multiplied by total rental expenses.

These are your allowable rental expenses. You can deduct them from your property's gross rental income.

After the deduction, the amount left over is what you'll pay income tax on.