Simplified tax for short-stay housing providers proposed - Consultation - 22 March 2019 New Zealand

Helen427
Level 10
Auckland, New Zealand

Simplified tax for short-stay housing providers proposed - Consultation - 22 March 2019 New Zealand

Simplified tax for short-stay housing providers proposed

Inland Revenue is seeking feedback on a proposal to simplify tax obligations for people who rent out their property as short-term accommodation.

IRD’s Director Public Rulings Susan Price says if someone gets money from renting out their house, a room, holiday home or a sleep-out - it's income – and they have to file a tax return.

“People renting out a room in their home can claim costs like advertising and a proportion of the expenses for the time the space is rented including things like rates, insurance and cleaning. What we’re proposing in our draft Determination is a standard, nightly amount to claim as costs,” Susan Price says.

“The proposed amount is $50 a night if the host is the home owner and $45 a night if the host rents the property. They may qualify if the space is rented for up to 100 days each year.

“Qualifying hosts may be able to use the standard costs from the Determination and don’t have to work out their actual costs. If they don’t meet the criteria, or choose not to use the standard costs, all income must be returned and the actual costs calculated to claim as deductions.

“We’ve drafted the new rules to simplify the tax obligations for people who occasionally host short-stay accommodation guests in their home, using websites such as Airbnb or Bookabach.

”We’re also consulting on draft guidance about how the existing rules apply for other short-stay accommodation hosts who can’t use the proposed standardised deductions – either because they rent space out for more than 100 nights per year or because the accommodation isn’t in their home.

 

“We’re releasing the proposed Determinations and guidance in “Questions We’ve Been Asked” (QWBAs) for public consultation today. We’d very much like to hear from people on this,” Susan Price says. Inland Revenue is also updating the Determination that applies to taxpayers who have a boarder in their home. The refreshed Determination is also now out for public consultation.

 

The draft Determination and questions will be open for submission for six weeks and are available here: https://www.ird.govt.nz/public-consultation/current/.

 

Following consultation, Inland Revenue will review and consider any comments received before finalising and publishing the items.

Taxes help pay for essential important public services like hospitals and important social services. Please check our webpage www.ird.govt.nz/property to make sure you're paying your fair share.

 

https://www.ird.govt.nz/public-consultation/current/

Currently consulting on

Let us know what you think about our drafts. Are they technically accurate? Do they fairly reflect taxation legislation? Are they in line with commercial reality and useful in practical situations?


PUB00303/a to PUB00303/g: Renting out your home, a room within your home, or a separate residential property as short-stay accommodation.

We’re consulting on 7 draft items that explain your tax obligations if you rent out your home, a room within your home, or a separate residential property. These items focus on short-stay accommodation provided through peer-to-peer websites such as Airbnb, Bookabach or Holiday Houses.

To help you work out which items are relevant to your situation, you should read the Overview first. The Overview has flowcharts you can work through to find the items most relevant to your situation, and links straight through to those items.

We’ll be consulting on some further draft items on short-stay accommodation in the coming months - one covering the GST issues in detail, and one covering the issues that arise where the property is held in trust.

Comment deadline: 22 March 2019

 

3 Replies 3
Helen427
Level 10
Auckland, New Zealand

Hello fellow New Zealand Hosts and Guests of Airbnb, please share amongst our community and make a submission to IRD - Inland Revenue Tax Department.

 

Everyone's say is important.

 

It's observed they are having a 100 day limit for amount able to be claimed for hosting a private room.

 

There doesn't appear to be any info, of what I've read, for over and above the 100 days, bearing in mind Airbnb and other booking platforms are used more frequently now than the traditional Trade Me platform for home sharing, older folk will recall that The Herald / Dominion Post etc used to have at least a page or more of Rental listings for whole properties and flatmates, perhaps it's an area that needs to have greater discussion.

 

One must be mindful and considerate of the fact people do have economic reasons to share their home and for whatever reason, including health reasons, may need to have time away from sharing with others for their own respite, yet may need to have someone sharing with them over the 100 day proposed guidelines.

 

Thoughts and contributions welcome on here to.

 

 

Helen427
Level 10
Auckland, New Zealand

Note, Deadline for submissions is 22 March 2019

Helen427
Level 10
Auckland, New Zealand

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Call for regulations on Airbnb-style accommodation in Taranaki