Sharing Assets & Taxes

Fees paid to you when you share an asset are taxable income. You may also have to pay goods and services tax (GST) on asset sharing income.

Many types of assets can be shared through a platform, including:

• personal assets like bicycles, boats, cars and caravans/recreational vehicles through platforms such as MyCarYourRental, Mighway, YourDrive or Get My Boat
• storage or business space like car parking spaces, offices and kitchens through platforms such as Parkable, Parkhound or Sharedspace
• personal belongings like tools, equipment and clothes through platforms such as ShareGear, EquipmentShare and Quipmo.

When you get a fee for assets you own or lease that you rented out on a digital platform, you:

• must declare all income you receive in your income tax return
• are entitled to claim certain expenses as income tax deductions
• need to keep records of the income you earn and of the expenses you can claim as deductions.

 

Renting out all or part of your home on a short-term basis has different rules you need to consider. 

How GST applies when sharing assets

If you’re renting out or sharing owned or leased assets, you must register for GST if you earn more than $60,000 from all taxable activities including renting or sharing assets in any 12-month period.

If you’re already GST-registered, for example as an IT contractor, you can use the same GST registration for your asset-sharing activities.

If you’re GST-registered, you can claim GST for expenses related to your business. If you’re claiming GST for purchasing an asset, you must split the expense between personal and business use.

Income and expenses for asset sharing

Income earned from renting out or sharing assets you own or lease is taxable income and must be declared in your income tax return. You must declare the income even if it is small or is done only to supplement your income from a job or business activities.

 

You can claim deductions for expenses directly relating to earnings of your asset sharing income.

The person or people who own or lease the asset, regardless of who is registered on the platform, declares the income in their tax return. If you own an asset jointly with another person, you must declare your income and expenses in proportion to your share of the asset.

For more information, please visit the Inland Revenue website, contact a Tax Agent or talk to your Accountant.