Rental Property: Are Legal Fees Deductible?

The answer is maybe.  It really depends on your circumstances.

If 

• you are in the business of renting properties, and
• your total legal expenses for the income year are $10,000 or less

then you can claim legal fees. If they are over the $10,000 mark... well, in rental residential property that is highly unlikely!

Please see this page at IRD for more info; remember though it is only talking about rental residential property, as different rules apply for property traders/developers.

As always, if you would like more information or are not sure about your situation, please contact us.

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​NB: If you are a property developer or trader, and therefore paying tax on the net profits from the sale of your buildings, then legal fees are one of the things you can claim.