Travel to your Rental Property

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Janine Gartner

If you use your own vehicle during renting your property, for example, travelling to inspect a property or to do some repairs, you may be able to claim some vehicle running costs as an expense against your income.

There are a few options for claiming motor vehicle expenses:

  • Use the Inland Revenue mileage rates. These rates are based on the average cost to run a motor vehicle. To claim mileage rates, you need to keep a vehicle logbook and record the date, distance travelled and reason for each trip related to your rental activity.
  • Or you can claim a percentage of the total running costs (for example, petrol, oil, repairs, registration, insurance) and depreciation. You need to keep records of the running costs. At the end of the year, add them all up and work out what percentage of these running costs and depreciation relates to your rental activity. To do this you’ll need to keep an annual logbook and record the total mileage for the year and the total distance travelled as part of your rental activity, with a breakdown of the date, distance and reason for each trip.
  • Or, you can keep a logbook for a test period of at least three months every three years that shows, the odometer reading at the start of the test period, the total distance travelled as part of your rental activity, with a breakdown of the date, distance and reason for each trip and the odometer reading at the end of the test period.

To find out more about claiming mileage rates visit IRD

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