It’s best to keep records of any spending on a property that’s not your main home, or that's not your main home for the entire time you own it. This also applies to commercial property.
This is the case even if:
- you do not intend to use the property as part of a business (such as a rental)
- there are no plans to sell any time soon.
Why you should keep records
In general, it’s not enough to tell us you’ve spent money on a property. You need to be able to show us proof of the spending to be able to claim it as an expense in your income tax return or GST return, if you’re GST-registered.
If you sell the property and have to pay income tax on your profit, you may be able to pay less tax by claiming for certain spending you’ve made on the property.
Find out if your property sale might be taxable.
When you need to pay tax on property sales
What to keep for all property
Keep these documents in a safe place for any property you own or used to own.
- The sale and purchase agreements from when you bought or sold the property.
- The solicitor’s settlement statements from when you bought or sold the property.
- Receipts for any fees associated with buying or selling the property.
- Receipts for any renovations or improvements you made to the property.
Property to rent or lease out
If you rent out or lease out a property, you should keep records of all your claimable expenses.
If you’re in the business of providing rental accommodation, there are separate rules about what records you must keep by law.