Open-plan living space, with man smiling and shaking hands with woman wearing backpack and holding trolley suitcase

Airbnb is an online accommodation platform that allows people to rent out their spare rooms, home or office spaces and is growing in popularity in New Zealand, with more than 7,000 properties listed on the website.

While this is becoming a popular avenue for earning additional income, many people are unaware of the tax obligations associated with the resulting income generated.

Any income received from renting out your spare room, home or property is liable for income tax and will need to be declared in your tax return.

There are some expenses relating to maintaining and renting out your property which you can claim, however you will need to keep receipts and a record of when the room was rented.

If you are only renting your spare room, the deduction claimable for these expenses will be limited to the percentage of the area of your house that was rented.

Inland Revenue has said "if a person is renting rooms in their home to tourists (via websites such as Airbnb and bookabach) they are effectively acting as a landlord and will need to pay tax on that income accordingly."

If you are unsure of your obligations regarding rental income or wish to discuss the matter further, please contact one of our friendly advisers – we will be happy to help.

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