The Inland Revenue produces a useful booklet (Rental Income - IR264) which details what income from your residential property investment you need to include in your tax return. Some key points are:

• Rental income must be taxed in the year it is received.  For example, if you receive two weeks rent payment in advance on 31 March, it must be included in that year’s tax return – even though it is to pay for rent in the next financial year.
• You don’t haveto include Tenancy Bonds as taxable income
• Where assets associated with your property investment (such as appliances) are sold for more than their depreciated value and depreciation is recovered, it must be treated as taxable income (see our section on What happens if you sell a depreciated asset?).
  

This material is for information purposes only. You should seek professional advice related to your individual circumstances. While The National Bank has taken care to ensure that this information is from reliable sources, it cannot warrant its accuracy, completeness or suitability for your intended use. To the extent permitted by law, The National Bank does not accept any responsibility or liability arising from your use of this information. Our lending criteria, terms, conditions and fees apply.