- you and any person associated with you, even if 100% market rent is paid
- use by non-associated people if you earn rent below 80% of the market rate.
- a non-associated person with an earned rent to you at 80% or above of market rates.
- You make a loss
- the gross income from income-earning use is less than 2% of the rateable value of the property
Deduction of Your Expenses from Mixed-Use Holiday Home
Your expenses fall into three different categories
- Fully deductible: 100% of any expense relating solely to income-earning use of the holiday home
- Not deductible: Expenses that relate to the private use of the holiday home. (e.g Cost of bicycles stored in locked garage not available to non-associated people who are renting your place.)
- Apportioned: You need to apportion expenses that relate to both income-earning and private uses. Speak with Brett in at the office about the exact details of this.