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Ngā rawa whakamahinga hanumi Mixed-use assets

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Mixed-use assets are holiday homes, boats and aircraft with both private and business use.

You have a mixed-use asset if during the tax year the asset is:

  • used for both private use and income-earning use
  • unused for 62 days or more. 

The rules apply to any:

  • property, regardless of cost price or current value
  • boat or aircraft which had a cost or market value of $50,000 or more when you bought it
  • additional item or accessory relating to the asset, for example a quad bike stored at a holiday home.

The rules do not apply to a:

  • residential property used for long-term rental
  • business asset where the private use is minor, for example once a year
  • home office where your expense claim is based on floor area.

These are known as excluded assets.

Mixed-use assets and GST

The mixed-use asset rules also apply to GST as well.

If you're GST-registered, you can claim GST on the percentage of expenses that relate to the business use of the asset.

Learn more about the GST rules on mixed-use assets in the Tax Information Bulletin.

Tax Information Bulletin | Volume 25 No. 9 | October 2013

Opting out of the mixed-use assets rules

You can choose to exclude income or expenses relating to your asset from your income tax and GST returns when:

  • your income from income-earning use is less than $4,000 for the tax year. This excludes income for private use.
  • you have quarantined expenditure which is losses held over to a future tax year to offset against future profits from the asset. Some assets cannot be subject to quarantine rules.