Records to keep for FIF: a checklist for NZ investors

FIF tax is built from figures your broker may not keep for you forever: what each holding cost, what it was worth on 1 April, every buy and sell in the year, and the exchange rates you used. Inland Revenue says to keep all records, including electronic ones, "for at least 7 tax years" (IRD record keeping page, 14 May 2026). This guide lists what to keep and why each item matters.

The checklist

Record	Why the FIF rules need it	Source of the rule
Contract notes for every buy and sell: date, number of shares, price, brokerage, currency	Cost for the $50,000 test; the quick sale adjustment; comparative value	IR461 pp9, 11, 15
A running total of cost, day by day	The threshold is crossed if cost is more than $50,000 "at any time in the year"	ITA s CQ 5(1)(d)(i)
Market value of each holding on 1 April, in NZ$	FDR is 5% of the opening value; CV starts from it; the FIF disclosure needs a start or end value	IR461 pp11, 14; IRD disclosure page
Market value on 31 March, in NZ$	Closing value for CV	IR461 p11
Dividends, with foreign tax withheld and the gross amount	CV gains; foreign tax credit claims, capped per company; IR3G asks you to attach proof of overseas tax	IR461 pp11, 20; IR3G 2026 p22
Your exchange rate method, and the rates used	One method for all interests, applied consistently; the rolling average must be kept once started	IR461 p13; IRD currency page
Name and country of each investment	The FIF disclosure asks for both	IRD disclosure page
Which method you used each year (FDR or CV) and the workings	Individuals can switch between years, not within one; all choosable interests use the same method	IR461 pp14, 16
Copies of returns where you included FIF income while under $50,000	The 4-year look-back after opting in	ITA s CQ 5(1)(d)(iii)

IRD's general rule is that records must be in English or Māori unless it approves another language (IRD record keeping page). If a statement is in another language, ask IRD or your accountant what is needed.

Cost: the record people most often lack

The $50,000 threshold is measured on cost, "generally the amount paid" (IR461 p9), not market value. A few special cases need their own records (IR461 p23):

a share split or non-taxable bonus issue: the original cost spread by market values at the time;
shares received for something other than money: the market value of what you gave;
shares bought before 1 January 2000: actual cost, or half the market value on 1 April 2007.

Platforms show a running cost figure, but each covers only its own holdings. If you use more than one platform, your threshold test is the total across all of them, so keep your own combined record. Our threshold checker adds them up and shows the peak.

One gap to note: IRD does not say how a partial sale reduces cost for the threshold. Our checker uses average cost and says so. Keep the records that would let you or your accountant use another basis if IRD clarifies it.

Holding jointly? Each person counts their share of joint holdings (IR461 p9). Keep the account records that show whose names the shares are in; our couples guide covers the split.

Why every trade matters: the quick sale example

Under FDR, a buy and a sell of the same shares in one year triggers a quick sale adjustment (IR461 p15). You cannot work it out without dates, share numbers and amounts for every trade. IRD's own example, Company A, run through our engine:

Date	Action	Shares	Amount
1 April	Opening holding	10,000	$200,000 value
1 October	Buy	5,000	$110,000
1 December	Sell	4,000	$100,000
23 December	Buy	2,000	$44,000

The peak holding differential is 2,000 shares and the average cost $22, so the peak holding amount is $2,200; the actual gain is $12,000; the adjustment is the lesser, $2,200. FDR income is $10,000 plus $2,200: $12,200, matching IR461 p15. Our quick sale guide walks through each step. If you buy through regular auto-invest and sometimes sell, every one of those trades is part of this calculation.

Values and exchange rates

Market value is generally the exchange price; published unit prices or redemption values may be used, but exit values with an early withdrawal penalty are not acceptable (IR461 p13). Save a statement or screenshot showing each holding's value on 1 April each year. Note where each figure came from, so it can be checked later.

For currency, IR461 offers the actual rate on each day (IRD accepts the mid-month rate for the month), or a rolling 12-month average, applied to all your interests (IR461 p13). IRD says that if you start with the rolling average, "you must keep using it every year" (IRD currency page). So write down which method you chose in your first FIF year and keep the published rate tables you used. Our exchange rates page has IRD's published rates; the exchange rate guide explains the choice.

Records for special situations

New migrants. Your residence start date and the evidence for it, and the market value of each holding when your transitional window ends. See new migrants.
Revenue account method. Cost of each RAM share, dividends, sale proceeds, losses carried forward, and a market valuation on the day you leave New Zealand: if you sell within 3 years you must give IRD that value (IR461 p18). See RAM.
Foreign super. The date you joined, contributions made while resident, and statements for any lump sum or transfer; the schedule method needs the dates and the contribution amounts (IR1024; IRD schedule method page).
Platform reports. Keep each year's FIF report or holdings report from each platform. IRD accepts a supporting report, including an investment adviser's report, where several FIFs are combined in the return (IRD reporting overseas income page).

A simple yearly routine

When	What to save
On or just after 1 April	A statement or screenshot of every holding's value on 1 April, from every platform, and your total cost on that day
After every trade	The contract note, and your updated running cost total; check it against $50,000
When dividends are paid	The dividend statement showing the gross amount and the foreign tax withheld
After 31 March	Each platform's year-end FIF or holdings report, and the 31 March values
When you file	Your FDR and CV workings, the method chosen, the exchange rate tables used, and a copy of the IR3 and IR1261 overseas income summary

A folder per income year, with one subfolder per platform, is enough for most people. The point is that every figure in your return can be traced back to a document. If you are past the threshold for the first time, the IR1261 and disclosure guide lists what IRD asks for at filing time.

If records are missing, or you have not filed

IRD exchanges financial account information with many countries each year and checks it against returns (IR461 p4). If you find you should have returned FIF income and did not, IRD encourages a voluntary disclosure; made before an audit starts, shortfall penalties "may be reduced by up to 100%" (IR461 p4).

For working out FIF income where records are incomplete, IR461 points to Questions We've Been Asked QB 23/10, "Foreign investment fund (FIF) calculation methods in cases of non-compliance", and Standard Practice Statement SPS 19/02 on voluntary disclosures (IR461 p22 note 11). We have not summarised QB 23/10 here; ask your accountant to apply it.

To rebuild records, start with broker annual statements and contract note archives, then historical prices for each 1 April. Our FIF calculator covers the 2025/26 and 2026/27 years, and the IR3 guide shows where the results go.

This is general information, not tax advice; check with your accountant. Rules checked 12 November 2026.

Questions

How long should I keep FIF records?

IRD says to keep all records, including electronic ones, for at least 7 tax years. For cost records, keep them as long as you hold the shares, because cost is needed every year for the threshold.

Is my platform's FIF report enough?

It is a good start, but it covers only that platform, and you still need your combined cost for the threshold. IRD accepts a supporting report where several FIFs are combined.

Do I need records if I am under $50,000?

Yes. You need cost records to show you stayed under the threshold all year, and dividend records for the tax on dividends.

Can records be electronic?

Yes. IRD's 7-year rule covers records "including those in electronic form".

Sources

Checked 12 November 2026. General information, not tax advice; check with your accountant. Spotted an error? Email [email protected].