AirBnB – What You Should Know

Using AirBnB and similar platforms to rent a spare room, sleep out or holiday home has become increasingly popular and it’s important to understand the Income Tax and possible GST consequences that can arise from this type of activity.

Any money you receive from renting your room or home will be income on which you will need to pay income tax. Of course you will incur costs in earning that money, which may be deductible from that income. However, where you are also using the property, mixed use asset rules will apply. Even when the mixed-use asset rules do not apply, an acceptable method for apportioning expenses will be required.

If you are required to register for GST (or register voluntarily) the property has been bought into the GST net, meaning you may need to account for GST on the sale of the property.

It’s important to remember the thing that makes it easy for you to rent a property on AirBnB is the same thing that makes it easy for IRD and local councils to monitor your activity.

If you are letting a room or home on AirBnB or are thinking of doing so, please contact us to discuss further.