All Topics / Legal & Accounting / Tax help with boarders

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of acurabotacurabot
    Participant
    @acurabot
    Join Date: 2013
    Post Count: 22

    Hi guys,

    I need some help in regards to whether I need to declare tax on boarders. I have been told by one accountant that if I live at a house which I am boarding the rooms to students etc, I do not need to declare it on tax as it is not tax deductible. Another accountant told me that I have to declare it and it is tax deductible.

    Could anyone shed some light on this? Also, by living at the address and if I do not need to declare tax on my rental income, could I still claim tax on investment expenses i.e. furniture etc?

    Thanks,

    Donnie

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    If they are paying anymore than their share of food and ulities then it is rent and declarable. You will also partially lose the CGT free exemption.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of acurabotacurabot
    Participant
    @acurabot
    Join Date: 2013
    Post Count: 22
    Profile photo of craynalcraynal
    Participant
    @craynal
    Join Date: 2013
    Post Count: 2

    If you are in New Zealand, there is no tax if the boarders pay less than $247 per week for the first 2 boarders and $202 each for 3-4 boarders. This is the standard cost method.  If there are 5 or more boarders then you have to use the actual cost method, and it becomes a pretty involved calculation.

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.