Can I claim management fee as business expense?
Location is New Zealand. I have an agency that looks after a rental property for me, and they charge me management fee every two weeks.
The tenants pay the agency rent, the agency deducts their management fee and pays me the rest. So this management fee transfer has never shown up in my (bank) account.
I am wondering if this management fee is tax deductible? E.g. I can claim it as an expense.
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The agency should definitely issue invoices for their service fees. Its an expense directly related to the renting business you operate so for me you both can and should claim it.
That being said, the way your question is phrased alludes to this being somehow an informal off-the-books agreement you have in which case you obviously can't claim for tax purposes. Other than that, the way you pay this fee doesn't have anything to do with the fact you pay it or your eligibility to claim it, so if you have a formal agreement with them, by all means, claim these expenses.
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