Short Term Rentals 2025 – The Income Tax Calculations 2025  

Description

Join this practical course as we offer clear examples & common scenarios of how the rules apply to short term rentals. Delve into how rules apply in various situations, including interest deductibility, residential loss ring fencing, mixed-use asset limitations, fit out claims, GST marketplace rules, and income tax treatment during renovations

We are continuing to see an increase in the number of people who had never let a room or their “bach/crib” as short stay accommodation in the past are starting to do so to help cover the costs of inflation.

Anyone who deals with clients that let property (including a room in their own home) on a short stay accommodation basis, whether through Bachcare or otherwise, will benefit from this practical focused course that will look at examples of how the rules apply in varying situations.

We will work through how the rules apply in practice using common scenarios by illustrating the calculations and the impact of the apportionments and limitations including but not limited to:

• Interest deductibility for 2025 and beyond
• Residential loss ring fencing and what it means for short stay rental property owners
• Mixed-use asset limitations/apportionments and quarantining of expenditure
• Fit out claims under the new s DB 65B
• Deductibility of holding costs if a sale is taxable
• The income tax impact of the GST marketplace rules
• Income tax treatment when a property is being renovated.

We will work through scenarios that we all see on a regular basis and work through the implications of the income tax rules. While working through the various scenarios, we will focus on the practical outcomes and considerations.

Note: This webinar pairs perfectly with our Short Term Rentals – The Income Tax Rules 2025 webinar, airing 29 May, which works through the rules themselves and how they apply rather than the calculations.

LEARNING OUTCOMES

Upon satisfactory completion of this webinar, you will:

• Have a better understanding of the income tax calculations required for clients who let property as short stay accommodation, including:
• How income tax rules practically apply;
• How the Mixed-Use Assets rules apply; and
• The income tax implications of different ownership options.
• Gain an understanding of the issues arising from income tax changes, including bright-line, interest deductibility and commercial depreciation and what it all means in real terms.
• Be able to guide your clients through the various issues and competing objectives that they will have and face when letting property as short stay accommodation.

SUITED TO

This course will be suitable for all accounting and legal practitioners that have clients letting through Bachcare and the like, as well as real estate agents and property letting managers.

PRESENTER

Daniel Gibbons, Partner  - Tax Advisory, Findex/Crowe (presenting on behalf of TEO)

Daniel is a Partner for Findex in Queenstown. Daniel has been with Findex for 17 years, where he advises on a wide range of tax matters, including property transactions and property ownership structures, international taxation issues, the tax treatment of investments and providing structuring advice to clients, including assistance for family group restructures. Daniel is recognised as a leader in the taxation treatment of short stay accommodation, providing training to other practitioners.