FROM SHORT TO LONG-TERM RENTALS

With New Zealand’s borders likely to be closed for some time, a number of clients who have rented properties on a short-term basis (for example, via Airbnb) are converting those properties to long-term residential tenancies. What are the tax implications?

INCOME TAX

Whether a property is rented out on a short or long-term basis, income received is taxable. However, there are differences when claiming expenses and losses.

Property rented