While depreciation for rental properties ceased from 1 April 2011 depreciation can still be claimed for some chattels including carpet, fencing, curtains, blinds and stoves. The general rule is that if the asset is separate from the house depreciation can be claimed.
Special Tax Code Available for Rental Losses:
Salary and wage earners who own a loss making rental property in their own name can apply for a special tax code with the IRD using form IR 23BS. The special tax code permits PAYE to be deducted at a lower rate to reflect the rental loss that can be offset against the employee’s earnings (note this presents a timing advantage compared to waiting for the end of the tax year to claim the loss).
For more information about the tax treatment of your residential property portfolio please talk to your UHY Director.