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Te kerēme rawa whakamahinga hanumi Claiming mixed-used assets


Types of mixed-use expenses

Fully deductible expenses

You can claim 100% of any expense solely for the income-earning use of the asset. For example, costs of advertising for tenants for your holiday home, costs of repairs when your boat was damaged during a charter trip.

Not deductible expenses

You can't claim any expenses for the private use of the asset. For example, costs of a quad bike stored in a locked garage and unavailable to the general public renting your holiday home.

Apportioned expenses

If an expense relates to both income-earning use and private use, you need to apportion it.

Private use of an asset

"Private use" of your mixed-use asset means use by:

  • you, your family or associated people, whether you receive income from the asset or not
  • non-associated people if you receive income at less than 80% of market rates.

Income received for private use is exempt income and expenses for private use is not deductible.

Income-earning use

"Income-earning use" of your mixed-use asset means use by a non-associated person who pays you at 80% or more of market value.

Income-earning days include time you spend, either occupying or using the asset to:

  • repair damage to your asset, provided the damage occurred during income-earning days
  • relocate the asset, provided you're paid to do so.