APIA Blog

RSS Feed

CGT on family homes with rent-by-room

Monday, April 01, 2019

IMG CREDIT: UNSPLASH

This week's question comes from Tina (paraphrased): 

The TWG report recommends that family homes be exempt from its proposed CGT. If I sell a family home which has had rooms rented out over a period of time, would I have to pay CGT on the sale or a portion of the sale?

Amanda Watt from Shortland CA kindly responds below: 

 

Based on the TWG's final report - you will have two options, you can either declare the income, claim no expenses relating to the property and then you won't pay CGT when you sell. The other option is if you want to claim expense relating to the property (for the portion rented out) against the income earnt then you would also pay CGT on that portion when sold.

Note that this answer is general in nature and not intended as professional advice. 

Do you have any tenancy related questions? Write to us at admin@apia.org.nz or hit us up on our social channels here and here

 

Recent Posts


Tags

meth contamination housing affordability productivity negotiation ventilation maintenance reserve bank bad tenant tenancy services capital gain investor LIM nzpif gluckman report CoreLogic house prices skill shortage ask an expert privacy buying finance tenancy tribunal income partners management relationship insurance off the plan market insulation tax advice rent increase property management Investment tip lvr Tribunal case study Property (Relationships) Act development equity financial advisers act return winz property value robert kiyosaki Landlording auckland asbestos structure How to trespass watercare initio education TCIT renovation clnz property cycle parry v inglis first home buying interest only short-term rental Standards New Zealand cgt bond form wins sale and purchas HSWA data security legal housing bubble holiday house smoke alarm p lab positive cash flow television cash-flow speculator Jeff Bezos letting HHGA inspection investment strategy Editor's Choice government heater Market report debt enforcement Must know trademe warren buffett cat rent arrears principal and interest business landlord tenant DTI unitary plan subdivision bond ring-fencing sale and purchase minor dwelling Kris Pedersen Mortgages and Insurance market rent scotney williams heating tenancy issues mortgage buyer's agent Must knows property maintenance auckland council election 2017 beginner investor warm up new zealand Investor story twg report rental wof personal growth damage letting fee property building shower dome rent ird rta rta reform wealth creation buying rules Question and answer water bill Q&A Holler trust rental market airbnb fixed-term tenancy boarding house Sponsored post interest rates extractor fan ocr HHS banking sublease Guest blog CCC worksafe anz

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Keith Hay Homes logo The Insulation Warehouse logo The Renovation Team logo The New Zealand Property Investors' Federation logo
09 360 2376
info@apia.org.nz

The Tenancy Practice Service and TPS Credit Control work closely with the Auckland Property Investors' Association. Our vision of bringing helpful resources, documents and high quality services to Auckland Property Investors and Property Managers is shared by APIA, so its a partnership that works well. 

The Auckland Property Investors' Association is a great organisation for those who want access to advice and information from a range of industry experts and partners. 



Mathieu Holt- Managing Director, The Tenancy Practice Service & TPS Credit Control
Through the Association I found the channels and methods to fund the purchase of property I never dreamed about. Grant Brown

All round it has been one of those things Neil and I felt was really worthwhile belonging to. We have learned so much it has just built our confidence in what we are doing.

Janice Bieleski
I read two articles in the monthly magazine that saved me over $5,000. That is my membership fee for the next 26 years and I am sure I will learn a whole lot more! John Duncan
Fantastic organisation. The networking opportunities are brilliant and provide us with information and opportunities that cannot be obtained anywhere else. We learn something new at every meeting and we've been in this game for nearly 20 years. Pauline and Gyanen Kumar

I find the information obtained from various APIA meetings very useful in guiding my own property investment and rental management.  I also enjoy the networking opportunities with like-minded investors.  I am inspired by other investors’ success and find the more experiences and knowledge that I share with others, the more confident I become.  

Thanks to all APIA event organizers and administrators for your brilliant work. 

Stella Shao

I like talking to people and learning from their experience because it gives me the confidence to invest well. I think it is a knowledge thing. I now know I am doing things the right way.

Stephen Weatherall

My APIA membership has become a total success.

Every time I attend a monthly or regional meeting I come away with so many useful and positive tips that have added value to my property investments and management.

Not only that, the website is a great place for practical advice and useful information. It has now evolved into an important resource for my business.

Talk about value for money! The discounts I have been getting at Bunnings when I present my APIA membership card have more than paid for my annual subscription!

Tim Duffett, Plan A Investments Limited