The holiday’s over for holiday home tax treatment

That's the view of PricewaterhouseCoopers (PwC) Tax Partner Geof Nightingale who spoke to Landlords in the wake of an announcement from Revenue Minister Peter Dunne about the release of an Issues Paper examining the tax treatment of mixed-use assets.

The Paper aims to examine the unfairness in the tax treatment of assets such as holiday homes used for both private and income generating purposes.

Dunne said the unfairness arises when owners claim the house is available for rent during significant periods of the year yet remains empty.

"This provides them with the basis for claiming tax deductions for expenses relating to the period the property is empty. Claiming these deductions could be regarded as unfair, particularly if the owner holds the asset primarily for private enjoyment," Dunne said.