Hello friends,
This is my first post here so will be great to get help.
Me and my wife jointly own a house with a joint mortgage .
Current Monthly Total loan repayment amount is NZD 2500
It is the first year of our house purchase so Monthly NZD 2500 = NZD 2000 ( Interest) + NZD 500 (principle) repayment
Since last 3 months we have got a flatmate in a vacant room . He's not a boarder and we are not giving him meals .
From him we get a monthly rent of NZD 900 ( expenses are extra) so we earn NZD 450 ( each ) as it is jointly owned house.
Query :-
I checked IRD guide and noted that mortgage interest can be considered as an expense.
as our mortgage interest is NZD 1000 (monthly per person ) and income is NZD 450 per person ,
it implies we don't have to declare it or pay any tax?
Is my understanding correct?
Please guide
This is my first post here so will be great to get help.
Me and my wife jointly own a house with a joint mortgage .
Current Monthly Total loan repayment amount is NZD 2500
It is the first year of our house purchase so Monthly NZD 2500 = NZD 2000 ( Interest) + NZD 500 (principle) repayment
Since last 3 months we have got a flatmate in a vacant room . He's not a boarder and we are not giving him meals .
From him we get a monthly rent of NZD 900 ( expenses are extra) so we earn NZD 450 ( each ) as it is jointly owned house.
Query :-
I checked IRD guide and noted that mortgage interest can be considered as an expense.
as our mortgage interest is NZD 1000 (monthly per person ) and income is NZD 450 per person ,
it implies we don't have to declare it or pay any tax?
Is my understanding correct?
Please guide
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