Parking conundrum

Lisa asks:
(updated on Monday, September 03rd 2018)

I am an Auckland homeowner with a house in a Trust - of which I am one of the beneficiaries. I live in the house with one other person. He pays a fixed amount to me each week to cover the rent and household expenses and we share some meals.

I understand he can be classified as a boarder, which means there is no income tax to pay, provided the amount I receive is capped at $266/week (for the 2018 tax year); if it’s higher than that I must pay tax on this income and submit a tax return.

My question relates to parking. As part of our negotiation, he pays a higher amount so that he can have guaranteed off-street parking. Would parking be classifiable as an additional cost, as it is not part of the basic outgoings (power, water, internet etc.) for providing board?

The rent and household expenses are only just covered by the current allowable standard-cost method, so it could make a difference of whether the amount is under or over the threshold.