ARTICLE · 23 JULY 2015

Tax deductions for your holiday house

Moore Australia

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The tax principles that apply to an investment property also apply to a holiday house, if it is leased or rented out.

AustraliaTax

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Many of us look forward to an annual getaway, either to the beach or the bush, as the best way to unwind and re-charge after another tiring year. While having a holiday house is a luxury that a lucky few may be fortunate enough to be able to own outright, for many Australians having a beach shack or bush retreat can be made more affordable by leasing out their properties to other holiday makers.

From an income tax point of view, the principles that apply to an investment rental property also apply to a holiday house if it is leased or rented out. Owners are therefore eligible to claim expenses for the property based on the proportion of the income year when it was rented out or, alternatively, based on when it was "genuinely available" for rent (more on this below).

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