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Can you Claim Depreciation on a Holiday House?




Well you can claim depreciation on a holiday house…provided it is available to be rented out.

If, for instance, you have a holiday house and you never rent it to anyone and just go there once or twice a year…well unfortunately you can’t claim depreciation on it.
If, however, you have available for rent most of the year and block out a 2 week for Xmas as, then you would be able to claim the normal depreciation available – but you would then need to multiply that by 50 then divide by 52.
From what I’m seeing, buying a holiday home post GFC has never looked better in some parts, particularly in areas like Noosa and Port Douglas.
These areas have really taken a beating and I’m seeing many clients buy holidays homes at close to or less than the construction cost.
The other thing to consider with holiday homes and depreciation is that if you furnish your holiday home, your depreciation claim can be quite lucrative as furniture depreciates quickly magnifying your depreciation deduction.
If you need a depreciation schedule for your holiday home – get a quote here or work out how much you can save using our free calculator.

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