You have just spent a relaxing time with your family in your favourite holiday destination, and you are thinking, wow this would be an ideal place to purchase a holiday home for future vacations and as an investment for retirement. To offset the expenses of running your holiday home, your plan is to have the holiday home available for rent for most of the year and use the home for your holidays for some of the year.

How does the Australian Taxation Office deal with a situation like this, do they allow you to claim any deductions against the holiday home rental income?

Keep your receipts throughout the year, for EVERYTHING. If unsure keep the receipt and ask your accountant if it is relevant. Keep your receipts organised and sort in to categories and total each category. If you are claiming a motor vehicle, keep a log book.