September, 2020Inland Revenue (IRD) is cutting some slack for landlords moving homes
or rooms from Airbnb-type platforms to long-term rentals.
The short-term rental market took a dive when inbound tourism was
shut down due to the Covid-19 pandemic.
Many landlords in that market switched to the long-term rental market
to help pay their mortgage.
The problem, however, is they faced the risk of GST deregistration,
meaning theyd have to return 15% of the market value of their
As local Findex tax advisory partner Daniel Gibbons says, if youre
talking about a $1 million property, youre writing a cheque for
Now, IRDs said you can stay GST-registered if you can promise youll
revert to short-term lets within 18 months of switching to long-term
An application to IRD has to be made by October 31, or that time period
reduces to 12 months.
Gibbons says, given how uncertain the future is, it might be difficult to
make that commitment, but its worth doing.
For those intending permanently moving into long-term letting, this
relief isnt for them, he adds.
They do have to really face it at some point, its going to come.
Source: Mountain Scene
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