Will interest still be deductible on short stay accommodation?
One issue with the new tax changes I am wondering if interest will still be an allowable expense for air bnb?
Theres two scenarios here. 1 is the people who rent out rooms in there own home. Realistically these people either arent paying tax or will use the standard cost method so no real affect here
The second option is people who rent out the whole house on air bnb etc. (Still not gst registered ). I am wondering if these people will no longer be able to claim interest as an expense.
Logically I am assuming not.... but the IRD has previously treated short stay and long stay differently (gst) therefore wondering if this might be a loophole. I havent found any commentary on this issue.