Do your clients have a holiday home?

Your clients can only claim deductions to the extent their holiday home expenses are incurred for the purpose of producing rental income.

Many Australians own a holiday home, but there are a small number of holiday home owners who, on average claim deductions that are six times higher than income earned from the property.

Questions to ask

Check if your clients are correctly apportioning their eligible deductions according to when the property is producing income.

Here are a few questions you can ask to make sure the claims are a valid rental deduction:

• How many days was it rented out and was the rent in line with market values?
• Where do you advertise for rent and were any restrictions placed on tenants?
• Have you, your family or friends used the property?

By ensuring your clients' claims are reasonable, you are helping to level the playing field.

Our information about Holiday homes can help with what can and can't be claimed.