![]() GST and renting out residential property Rental property excess deductions When selling the property or changing its use to non-taxable (eg long-term renting) you'll also have to pay GST on the sale price or market value. claim GST on your allowable rental expenses.pay GST on your short-term rental income.When you’re renting out short-term and you're registered for GST you: register for GST if your total turnover is over $60,000 in a 12 month period.add your short-term rental income to income from your other taxable activities.If you’re not already registered for GST, you need to: Renting out short-term is a taxable activity for GST. You do not have to register, file or claim GST for your rental income or expenses. Residential rental income from renting out long-term is exempt from GST. Tax by rental property type GST and renting out residential property The way you work out income and expenses is not the same for all residential property.Ĭheck out tax by rental property type to see what to do for your property: Your total allowable rental expenses and total rental income you earn go in the tax return you must fill in every year. Generally, you work out what tax there is to pay by deducting your allowable rental expenses from your gross rental income. Who pays tax on rental income Rental income and expense deductions who are not New Zealand residents but earn rental income from their New Zealand properties.Most people who earn rental income will pay income tax on it. It's also important to understand your obligations for: You need to pay tax on rental income in the year it's earned. Generally, the payments you get from renting out property are income.
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