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MIXED USE SCHEDULES (as per IRD NZ) as at http://www.ird.govt.nz/business-income-tax/expenses/holiday-homes/

MIXED USE SCHEDULES (as per IRD NZ) as at http://www.ird.govt.nz/business-income-tax/expenses/holiday-homes/

Claiming business expenses: Holiday homes - mixed-use assets

Mixed-use assets (holiday homes, boats and aircraft)

This page explains what mixed-use assets are and how tax rules apply to them. If you have a holiday home, boat or aircraft that these rules apply to, you'll need to calculate your income tax obligations differently.

The information here is for individuals, partnerships, trusts, Māori authorities and look-through companies. There are additional rules about claiming interest expenses for close companies that own mixed-use assets. These rules do not apply to companies that are not a close company.

 What excluded assets are

The rules don't apply to:

  • a residential property used for long-term rental, or
  • a business asset where the private use is minor, eg once a year, or
  • a home office, where your expense claim is based on floor area.

 When the new rules come into effect

  • From the 2013-14 tax year for holiday homes.
  • From the 2014-15 tax year for boats and aircraft.

 What mixed-use assets are

You have a mixed-use asset if, during the tax year, it's used for both private use and income-earning use, and it's also unused for 62 days or more.

The rules apply to any:

  • property, regardless of cost price or current value, and
  • boat or aircraft which had a cost or market value of $50,000 or more when you bought it, and
  • additional item or accessory relating to the asset, eg a quad bike stored at a holiday home.
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