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QB 19/08
20 May 2019

How do the standard income tax rules apply to a dwelling that I sometimes rent out as short-stay accommodation and sometimes use privately?

This QWBA is relevant if you’ve determined that for a particular income year the dwelling is subject to the standard rules, not the mixed-use asset rules. The main difference between the standard rules and the mixed-use asset rules is how you calculate what proportion of expenses you can deduct. Under the standard rules, the proportion of expenses that’s deductible is based on the amount of time the asset is used for, or available for, income-earning.

We recommend that you read our Short-stay accommodation overview to find the QWBA most relevant to your situation.

Note: this QWBA is superseded by IS 23/10: Deductibility of holding costs for land to the extent it is inconsistent with IS 23/10 in terms of deductibility of holding costs for periods land is vacant and where the mixed-use asset rules do not apply.