» holiday house https://www.bmtqs.com.au/bmt-insider Latest property and investor news Mon, 20 Oct 2025 22:43:26 +0000 en-US hourly 1 https://wordpress.org/?v=4.2.38 Uncover hidden tax benefits when you rent out your holiday home https://www.bmtqs.com.au/bmt-insider/uncover-hidden-tax-benefits-when-you-rent-out-your-holiday-home/ https://www.bmtqs.com.au/bmt-insider/uncover-hidden-tax-benefits-when-you-rent-out-your-holiday-home/#comments Wed, 11 Dec 2013 01:40:35 +0000 http://news.bmtqs.com.au/?p=481 The holiday season is upon us, and if you own a holiday home you may decide to spend time there yourself or rent it out to travellers or holiday makers for a couple of days or weeks or even months. If you’re planning on the latter, there are tax considerations you need to keep in mind when renting your property out for the holiday period. Income you receive from renting your holiday home out must be declared in your tax return. If you use your property personally throughout the year and then use it as an investment property for part of the year, you will need to prove to the Australian Taxation Office (ATO) that the property is an authentic investment. You should be able to claim deductions which include the interest expense of the mortgage for the times that your property was rented out. These will be apportioned between the time your property was rented out and the time it was occupied for personal use. Maintenance as an expense is deductible, though travel expenses to inspect your property or for general maintenance associated with your personal use of the property is not an income tax deduction. The great news is you may get higher depreciation allowances on holiday accommodation, because some short stay accommodation qualifies for 4% depreciation for 25 years compared to the standard 2.5% for 40 years. If your property is furnished your depreciation claim can be quite substantial as furniture depreciates quickly giving you greater claims earlier. If you own an apartment, in order for it to qualify, your apartment needs to meet certain criteria including being available for overnight accommodation and your apartment complex needs to provide a common dining facility or area. To find out how much you can save on your holiday home, use the BMT Tax Depreciation Calculator. If you need a depreciation schedule for a holiday home, you can request a quote today.

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