Rental income
April 2020
Read our booklet Rental income - IR264 to help you ll in this form.
Attach this form to your income tax return and keep a copy for your records.
Year ended 31 March
Your name IRD number
(8 digit numbers start in the second box. )
Address of property rented
Period the property was available for renting
Income - read Note 2 over the page.
1. Total rents
2. Other income
2A 2
3. Gain or loss on disposal (enter any loss in brackets)
4. Total income
Expenses - read Note 3 over the page.
5. Rates
6. Insurance
7. Interest
8. Agent’s collection fees
Repairs and maintenance—read Note 4 over the page.
Other (specify)
Depreciation - print the details below.
11. Buildings - read Note 6 over the page.
12. Assets - read Note 7 over the page.
12 13
14. Total expenses
15. Net rents (total rents less expenses) - subtract Box 14 from Box 4 and print in Box 15. Copy this amount
to your tax return, if the property is NOT residential property. For residential property, use the Residential
property deductions worksheets - IR226 to help you complete your return. Read note 5 over the page.
Depreciation of buildings - read Note 6 over the page.
16. Date
17. Construction materials
and building description
Day Month Year
Cost of buildings
(excluding cost of land) Rate Depreciation claimed
Straight line method (SL)
18 19
Opening adjusted tax value Rate Depreciation claimed Closing adjusted tax value
Diminishing value method
21 22
23 24
Depreciation of assets - read Note 7 over the page.
Opening adjusted
tax value
Closing adjusted
tax valueAsset Date purchased Cost Rate Depreciation claimed
The information on this form is based on current tax laws at the time
of printing.
Note 1 General
Fill in a separate IR3R for each property rented out. Each IR3R covers
the year to your balance date.
Note 2 Income
Enter the total rents received in Box 1. Enter any other income related to
the rental property, such as insurance receipts or rates refunds in Box2.
If you sell or dispose of any of your assets you may be required to account
for the loss or gain in Box 3 - call us on 0800 377 774.
Add up Boxes 1, 2 and 3 to calculate your total income. If Box 3 is a loss,
subtract it from the sum of Boxes 1 and 2. Enter the total income in Box4.
Note 3 Expenses
Claim ongoing expenses such as rates, insurance, interest and
depreciation in proportion to the number of months the property was
available for renting out, eg, if the property was available for 10 months,
you can claim
of these expenses.
Expense for a holiday home or bach used both privately and to earn
income may be subject to the mixed-use asset rules see the Rental
income - IR264 booklet for more information.
Note 4 Repairs, maintenance and other expenses
Please fully explain any claims for repairs, maintenance and other
expenses. You may claim repairs and maintenance but not additions or
improvements to property or plant. Improvements to property or plant can
be depreciated. If there isn’t enough space, please attach a separate note.
Note 5 Residential rental properties
From the start of the 2019-2020 income year, deductions for residential
rental properties are subject to residential property deduction rules.
The new rules limit the amount of deductions you can claim if your
residential rental property makes a loss in an income year. You can use
the Residential property deductions worksheets - IR1226 to help you
complete your return.
Note 6 Depreciation on buildings
From the 2011-12 income year, depreciation on buildings has reduced
to 0% where buildings have an economic life of more than 50 years. For
more information refer to Depreciation - a guide for businesses - IR260.
Note 7 Depreciation on assets
You may depreciate each item individually or pool some or all of the
assets to calculate depreciation. Assets which can be pooled are those
- are not used privately, and
- cost $5,000 or less, or
- have been depreciated so their adjusted tax value is $5,000 or less.
Pool depreciation is calculated on the average pool value at a single rate
using the DV method. The rate you must use for the pool is the lowest rate
for an asset in the pool. Once you have included an asset in a pool you
can segregate it only if you use the asset for private use.
If you switch from the DV to the SL method for assets not pooled,
calculate depreciation on the opening adjusted tax value instead of the
original cost.
To nd the correct rate of deprciation for an asset, please see our
depreciation rate nder at
Note 8 Record keeping
Keep your receipts and invoices with your records in case we request
them. You must keep all your records for seven years.
Note 9 More information
Our booklets Rental income - IR264, Depreciation - IR260 and
Depreciation rates - IR265 may help you. You can get these booklets and
this IR3R form at or by calling 0800 257 773. If you need more
help call us on 0800 377 774.
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