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Where travel related to your rental property is combined with a holiday or other private activities, you may need to apportion the expenses.
If you travel to inspect your rental property and combine this with a holiday, you need to take into account the reasons for your trip. If the main purpose of your trip is to have a holiday and the inspection of the property is incidental to that main purpose, you cannot claim a deduction for the cost of the travel. However, you may be able to claim local expenses directly related to the property inspection and a proportion of accommodation expenses.
Apportionment of travel expenses
The Hitchmans also owned another rental property in a resort town on the north coast of Queensland. They spent $1000 on airfares and $1500 on accommodation when they travelled from their home in Perth mainly for the purpose of holidaying in the resort town, but also to inspect the property. They also spent $50 on taxi fares from the hotel to the rental property and return. The Hitchmans spent one day on matters relating to the rental property and 9 days swimming and sightseeing.
No deduction can be claimed for any part of the $1000 airfares.
The Hitchmans can claim a deduction for the $50 taxi fare.
A deduction for 10 per cent of the accommodation expenses would be considered reasonable in the circumstances. That is, Mr and Mrs Hitchman can each claim a deduction of $100-a total of $200-as shown below:
$50 + $150* = $200
* $150 = 10% x $1500
Last modified: 18 Jul 2008QC 16578