Boarders
| # | Post |
|---|---|
| 51 | taken from a sub page: They are different to flatmates who share a house, expenses and chores. Usually one flatmate will be the tenancy holder. smallwoods - 2021-01-07 21:51:00 |
| 52 | smallwoods wrote: "services" is an interesting term in the modern world, and could surely include: You don't have to have a formal agreement such as a Tenancy agreement, but a written summary of what is being provided in the way of "services", signed & dated by both parties, is very beneficial to both parties (especially with a boarder of another country/language), and is acceptable to the two government agencies noted..... autumnwinds - 2021-01-07 22:04:00 |
| 53 | OK, let me try and break this down as there's clearly a lack of understanding here. If you provide a rent out a room in your own home, the Residential Tenancies Act doesn't apply, so let's put that to one side. The person renting the room might be a flatmate or a boarder. What's the distinction? A flatmate will generally be fairly independent, providing their own food, providing their own linen, doing their own laundry, etc. A boarder is defined as someone who to all intents and purposes lives as part of the family, receiving all the normal services that a member of the family might receive - eg most meals, laundry, transportation etc. Think young overseas student as a typical example of what a boarder is. You take them into the house and they live as part of the family. So why is this relevent? If you have a flatmate, you pay tax on their rental income as normal. You can also make some deductions for the use of electricity and stuff. But a boarder is getting a hole heap more for their rent. But rather than try and make it complicated by having to calculate the actual costs or providing food, etc, IRD simply provides a threshold up to which you don't have to pay tax. This isn't "free money", as such, because you are spending money on the boarder which you aren't claiming back as an expense. If, like the OP suggests, they want to rent out a room (or two) to tenants that are likely to be independent, then these are flatmates, and the tax exemption won't apply. Of course, how this actually operates in reality will lie between yourself and your IR3. A few pizzas won't cut it if the IRD come knocking. sparkychap - 2021-01-08 07:04:00 |
| 54 | sparkychap wrote:
Well here I was thinking that I had a grasp on this, then your second sentence threw me off! smallwoods - 2021-01-08 07:12:00 |
| 55 | sparkychap wrote:
This. Contrary to earlier claims, crown agency information sheets etc. are only for guidance and do not constitute the law per se or the entire law around a particular area. Law is all about context. You need to refer to the overarching Act, regulations and rules, and common law decisions rather than cherry picking a word or two here or there. Sparky is 100% correct in his approach and summation. johnston - 2021-01-08 07:18:00 |
| 56 | Just leave a bowel of rice on the bench, take it or leave it. msigg - 2021-01-08 07:19:00 |
| 57 | msigg wrote: Sounds like haggis... sparkychap - 2021-01-08 08:05:00 |
| 58 | smallwoods wrote: Really? You mean not being covered by the RTA? 5 Act excluded in certain cases (n) where the premises, not being a boarding house, continue to be used, during the tenancy, principally as a place of residence by the landlord or the owner of the premises or by any member of the landlord’s or owner’s family: sparkychap - 2021-01-08 08:20:00 |
| 59 | johnston wrote: And in the case of IRD, you also need to look at Tax Determinations, which are generally technical documents explaining how tax laws are interpreted, and detail additional rules and regulations made by the IRD under the Tax Administration Act, which often includes key definitions. sparkychap - 2021-01-08 08:23:00 |
| 60 | sparkychap wrote:
No. Edited by smallwoods at 11:23 am, Fri 8 Jan smallwoods - 2021-01-08 11:23:00 |
| 61 | smallwoods wrote: Ha ha, guilty. sparkychap - 2021-01-08 11:26:00 |
| 62 | I was more fixated on "But a boarder is getting a hole heap more for their rent." Surely a hole and heap are antonyms? cinderellagowns - 2021-01-08 15:25:00 |
| 63 | cinderellagowns wrote:
Covered by an entirely different Act. johnston - 2021-01-08 16:05:00 |
| 64 | cinderellagowns wrote:
No, a hole is a heap upside down!!!!!!!!!!!! smallwoods - 2021-01-08 16:20:00 |
| 65 | sparkychap wrote:
There is no doubt about that, as your name is on it!!!!!!!!!! smallwoods - 2021-01-08 16:21:00 |
| 66 | cinderellagowns wrote: seems some people have nothing better to do than come in here and criticise others. Who do you think you are? Seaqueen? sparkychap - 2021-01-08 16:24:00 |
| 67 | You guys really make a meal of things. A renter gets exclusive access, flatmates don't own the place but have exclusive access regarding the owner but don't have the owner or a representative of the owner living onsite, and a border lives with a property owner. Flatmates share the care of the place and the border doesn't. Both groups have to negotiate all the arrangements between themselves and the people they are living with. Edited by mechnificent at 4:43 pm, Fri 8 Jan mechnificent - 2021-01-08 16:42:00 |
| 68 | Wow, mech. Thanks so much for clearing that up. apollo11 - 2021-01-08 16:48:00 |
| 69 | Point being, it's all negotiable.. mechnificent - 2021-01-08 17:01:00 |
| 70 | mechnificent wrote: the only meal being made is by you and it’s half baked. Dearly me. sparkychap - 2021-01-08 17:13:00 |
| 71 | sparkychap wrote: zak21 - 2021-01-08 17:39:00 |
| 72 | zak21 wrote: great memory Zak! Yes - the full quote was “in snot on the side of a fish”! Edited by sparkychap at 5:45 pm, Fri 8 Jan sparkychap - 2021-01-08 17:42:00 |
| 73 | sparkychap wrote:
Ha very good. mechnificent - 2021-01-08 18:09:00 |
| 74 | IRD know perfectly well they'd be opening a can of worms if they tried stipulating what constituted a meal. mechnificent - 2021-01-08 18:10:00 |
| 75 | mechnificent wrote: its quite clear to me. What is the family eating? sparkychap - 2021-01-08 18:12:00 |
| 76 | zak21 wrote:
Then one could easily make a meal out of it???????? thumbs647 - 2021-01-08 18:12:00 |
| 77 | Worms Sparky.. That qualifies doesn't it. mechnificent - 2021-01-08 18:21:00 |
| 78 | mechnificent wrote: your family is strange. But as long as the worms form “regular meals” it’s a boarder. If not, it’s a flatmate. Edited by sparkychap at 6:29 pm, Fri 8 Jan sparkychap - 2021-01-08 18:23:00 |
| 79 | Lol We never eat boarders.. Edited by mechnificent at 6:34 pm, Fri 8 Jan mechnificent - 2021-01-08 18:34:00 |
| 80 | mechnificent wrote: neither do I. Flat mates fit better in the toaster. sparkychap - 2021-01-08 18:39:00 |
| 81 | Worms on toast... Mmmm They can eat what we eat, and like it. mechnificent - 2021-01-08 18:50:00 |
| 82 | As Mum used to say. mechnificent - 2021-01-08 18:51:00 |
| 83 | mechnificent wrote: Yes, Norman. sparkychap - 2021-01-08 19:24:00 |
| 84 | sparkychap wrote: apollo11 - 2021-01-08 19:47:00 |
| 85 | tee hee, sparkychap - 2021-01-08 21:13:00 |
| 86 | one of our boarders had dinner with us, the other didnt because he chose that but occasionally did if i had extra and he had just come home, breakfast was always available, sometimes it was just toast or ceriel, coffee tea although mostly didnt eat it either and washing powder provided. now im too old for boarders Edited by mansonprincess at 10:21 pm, Fri 8 Jan mansonprincess - 2021-01-08 22:21:00 |
| 87 | If the bureaucrats and all their greedy taxes and petty rules would have sex and travel - people would be free to innovate, adapt and there wouldn't be a housing disaster... pcle - 2021-01-09 06:55:00 |
| 88 | mechnificent wrote: I own my house and have a boarder. I've had a few over the last decade & don't see them as flatmates as I'm not flatting in my own home. It's easy money & like extra people in the house as company for my pets when I'm out. Mine have been friends and extended family, but I have flatted with strangers in the past so knew how to share a laundry and bathroom! My current boarder moved in a year ago & we agreed I'd buy groceries and do a "few" dinners a week, which tends to be 4 or 5. He mows the lawns as a favour, not because it's expected. He does his own washing, I don't go into his room so it's not cleaned by me, but I do the rest of the house. Board covers power, gas hot water, internet, rubbish and basic groceries. He shares his Netflix account with my kids. We're very happy with our set up. My last boarders were a family member and her child, and they bought their own food and did their own cooking and washing. Board covered power, rubbish, landline (until I canned it) and internet. They didn't do any housework other than washing dishes. I struggled with this as they did a lot of fry ups and the kitchen was often dirty from the teen cooking. They never ate cereal or sandwiches, all meals were fried or roasted, so they'd leave a dirty frying pan out, knowing they'd use it again later. I think the difference between my current boarder and the last couple is that he works, and they didn't. They were always home, where a worker is gone for a good chunk of most days. My biggest piece of advice is to find a working boarder as it means less mess and inconvenience. melagray - 2021-01-10 10:05:00 |
| 89 | pcle wrote: melagray - 2021-01-10 10:12:00 |
| 90 | melagray wrote: Based on the IRD determinations, yours was a flatmate not a boarder. Meaning tax was payable on their rent, but I'm sure you declared it all, so good on you. sparkychap - 2021-01-10 10:13:00 |
| 91 | melagray wrote: They are. "Regular meals" is the actual wording. sparkychap - 2021-01-10 10:18:00 |
| 92 | sparkychap wrote:
Where did you get this from? brants - 2021-01-10 17:15:00 |
| 93 | brants wrote: The relevent definitions are in a Tax Determination on when you can use the standard cost method for claiming costs against income for borders. This is the rule that allows you to pay no tax on up to the first $ 186 of rent per week on the basis you are providing boarding services: BOARDER means a person provided with boarding accommodation in return for payment, but does not include a child under five years of age who accompanies a parent or guardian who is a boarder; BOARDING ACCOMODATION means residential accommodation provided to boarders (often students) in conjunction with regular meals and other associated care, activities and benefits that usually or commonly occur in or are derived from a domestic (“family”) household, and does not include accommodation provided to residential tenants, flatmates or care home residents, nor emergency accommodation or short-stay accommodation; sparkychap - 2021-01-10 18:35:00 |
| 94 | sparkychap wrote: I did declare rent from my rental house, although sadly it always ran at a slight loss, but I didn't and won't be declaring the income from my boarders, whether I cook or not, as I'm not stupid. Obviously if you ever have a boarder who likes to cook their own food (I'm a vegetarian) you will choose to donate to IRD, and good on you. Edited by melagray at 9:53 am, Sat 23 Jan melagray - 2021-01-23 09:52:00 |
| 95 | IRD classifies a flatmate as someone renting a room in your house. sparkychap - 2021-01-23 09:55:00 |
| 96 | I’ll rephrase that: Anyone who rents a room in your house is classified as a flatmate. However if you provide them with regular meals and other services such as laundry and transport (ie they are effectively living as part of the family) the. They are classed as a boarder. Different tax treatments apply. sparkychap - 2021-01-23 11:22:00 |
| 97 | sparkychap wrote: Mine didn't, their board payment didn't change with the power bill, they got the Winter Energy payment but had NO extra costs as I bought the fire wood. No one but me ever cleaned that loo or bathroom, in 7 years. Rubbish collection is a service that I paid for. When the oven broke, I replaced it and paid the sparky, and of course the boarder did not contribute then or for anything else that needed repairing. You're hung up on the meals, but do you realize that often one flatmate does all the cooking lol. That does not make the other flatmate a boarder. melagray - 2021-01-23 15:14:00 |
| 98 | Did I just win? Because I think I just won. melagray - 2021-01-23 15:16:00 |
| 99 | Nope. sparkychap - 2021-01-23 15:38:00 |
| 100 | Geez. My teen still lives at home and when uni starts I will charge a fixed weekly amount for board based on calculations of her living at home. Teen wants to try self catering so I won't include food in the $ amount we set but will provide cleaning products, toilet paper etc in her room too, and I'm still likely to have her raid pantry for things she doesn't have. IRD would have to be mad to declare that arrangement makes a young adult living with parents a flatmate just on the basis of who prepared her food. I do everyone's laundry because full loads are cheaper than multiple small ones. She doesn't have shared chores but I expect her to help as I would anyone, I'm not a maid and she isn't paying 5 star hotel rates. She won't be sharing expenses or bills and def does not have rights to debate house rules like cleaning or having same say as flatmates do. Our house and our rules. Even IF IRD argued she was a flatmate in terms of income, there won't have tax payable if I use actual cost or the averaged method. I also still provide occasional transport which IRD removed from the averaged figure too but I could include. There will be no profit after if I deducted a 1/3 of all the essential household expenses so she will only be offsetting partially the cost of having a roof over her head. Honestly if IRD decides every school leaver teen who wants to make her own meals but contributes something financially while living at home still is a flatmate, they would be an uproar. dinx - 2021-01-23 21:36:00 |
