Claiming your holiday house tax deductions


Leasing out your holiday house to others can make your beach shack or bush retreat property more affordable.

Because the principles that apply to an investment rental property also apply to leased or rented holiday houses, owners are entitled to claim expenses for the property based on the proportion of the income year when it was rented or available for rent.           

Some deductible expenses include property insurance, interest on any funds borrowed to purchase the house, repairs and maintenance costs and capital works.


Owners who use the holiday house during the year cannot claim any deductions for the expenses that relate to private use. This extends to use by other family members, relatives or friends. For example, if the house is available to rent for most of the year, but two weeks are unavailable for personal use, then those two weeks must be ignored when calculating deductions.                                                                              


Owners can also make claims for feasible travel costs if any travel is made to inspect, maintain or repair the holiday house. The provision is that travel must be solely for these purposes, and not combined with simply visiting the property to have a holiday.

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