Getting a good tax deal on your holiday home

Saturday 14 February 2004

This year we will not be using our holiday home and have been told that it will rent well over holiday periods. If we do rent it, are we liable for tax on the rental? Can we claim the expenses of ownership as tax deductions?

By The Landlord

The rental will be taxable income. It will need to be declared in the property owner's tax return for the tax year in which the property is rented.

Tax deductions can be claimed for yearly expenses such as rates, maintenance, insurance and interest on borrowings for the acquisition of property.

Deductions for expenses are claimed in proportion to the number of months the property is available for renting out. For example, if the property is available for renting for only one month in the relevant tax year, only one-twelfth of each expense would be deductible.


Read More - Opens in a new window
Commenting is closed

Property News

Key reform will only protect bad tenants

Getting rid of “no cause” termination notices only serves to protect bad tenants and will have a negative impact on the broader community, not just landlords, according to landlord advocates.

House Prices

No stopping Capital price rises

There’s no sign of a slow-down in Wellington’s property prices with Trade Me Property’s latest data showing that asking prices continue to rise solidly.

Commercial

Demand challenges for commercial sector

Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.

Mortgages

LVR loosening likely - ANZ

LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.

Site by PHP Developer