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Holiday homes

If you own a holiday home you can only claim tax deductions for expenses to the extent the home is rented out or genuinely available for rent.

Even if you don’t rent it out, there are capital gains tax implications when you sell it.

Holiday homes – not rented out

If you own a holiday home and do not rent out the property, you do not include anything in your tax return until you sell it.

You will have to keep records from the time you purchase the property until the time you sell it to be able to work out the capital gain or loss when you sell.

Holiday homes – rented out

The principles that apply to a rental property also apply to a holiday home if it is rented out.

If you rent out your holiday home, you can claim expenses for the property based on the proportion of the income year it was rented out or was genuinely available for rent.

You have to apportion your expenses between periods of:

  • genuine rental
  • use by family or friends when you charge less than market rent
  • use for private purposes – such as when you use it yourself, or allow your family, relatives or friends to use it free of charge


Griffin & Associates

79 Denham St, Townsville City QLD 4810

Phone 07 4772 6588

Chartered Accountants