Inland Revenue has proposed that short-stay accommodation providers will be able to claim up to $50 per night as costs.
IRD director of public rulings said that if someone makes money from renting out their house, a room, holiday home or a sleep-out, it’s therefore income and they must 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 is a standard, nightly amount to claim as costs,” said Susan Price, director public rulings, IRD.
“The proposed amount is $50 a night if the host is the homeowner and $45 a night if the host rents the property. They may qualify if the space is rented for up to 100 days a year.”
The nightly standard-costs would cover:
- Costs for providing short-stay accommodation like financing, rent, insurance and rates
- Expenditure on items and services such as breakfast, pantry staples, linen, bathroom and laundry facilities, cleaning, power, telephone, internet, bedroom chattels and general household furniture, and advertising and host service fees.
The IRD is currently seeking feedback for the proposal to simplify short-term accommodation tax obligations.
The deadline for commenting on the issue is on 22 March 2019.