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

holiday house letting tenancy services boarding house trust Editor's Choice Sponsored post subdivision Tribunal case study development legal nzpif capital gain mortgage gluckman report partners Market report building cgt ask an expert trespass first home buying property value Investment tip damage worksafe CCC relationship buying rules Guest blog Holler Kris Pedersen Mortgages and Insurance property cycle CoreLogic Q&A government buying property management airbnb Property (Relationships) Act HHGA asbestos cat sale and purchas auckland renovation insulation privacy maintenance cash-flow clnz principal and interest buyer's agent HHS letting fee scotney williams Must knows inspection financial advisers act bad tenant debt enforcement Landlording short-term rental investment strategy ventilation rent arrears ird finance Jeff Bezos education extractor fan unitary plan house prices Gluckman Question and answer initio landlord Investor story rta reform off the plan tenancy tribunal warren buffett sublease property productivity lvr rta management market rent equity wins reserve bank speculator rental wof shower dome property maintenance rent increase investor advice housing affordability negotiation robert kiyosaki LIM business ocr warm up new zealand beginner investor trademe election 2017 heating TCIT termination interest only positive cash flow television p lab meth interest rates ring-fencing rent income HSWA smoke alarm winz minor dwelling parry v inglis How to personal growth auckland council twg report bond skill shortage tenant data security water bill market DTI Standards New Zealand structure wealth creation tax Must know heater insurance banking anz watercare RTAA 2019 bond form return rental market RBNZ tenancy issues meth contamination sale and purchase housing bubble fixed-term tenancy

Archive

Introducing Our Partners
Principal Sponsor - Kris Pedersen Mortgages & Insurance logo Gold Sponsor - Barfoot & Thompson logo Gold Sponsor - CoreLogic logo Property Apprentice 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