Holiday Home Tax and Deductions

Do you own a Holiday Home?

Depending on the rental states of your property, you may be liable for different deductions and tax implications as shown in the following.

Not rented out

If you don’t rent out your holiday home, you only include something in your tax return when you sell it. Keep all records while owning the property, to calculate the capital gain or loss, which you’ll need when you sell.

Rented out

Rental income received as income will need to be included in the tax report.

“You can claim expenses for the property based on the extent that they are incurred for the purpose of producing rental income.”

Not genuinely available for rent

If the property isn’t genuinely available for rent, and isn’t there for the purposes of rental income, you aren’t able to claim deductions when it’s not rented.

 

There are many other situations such as a part year rental, or you may have questions regarding the above information. You can find out more in detail at the ATO’s website, where all information above was sourced from.

Feel free to reach out to us if you require any help!