@niko9926 Good idea man, hope you hit the gym hard today!!
Cut until you feel that you are as lean as you want to be. Once you hit that point then you know it's time to go back into a bulk. When you do decide to start bulking again, you just need to slowly increase your calories by about 100 - 200 every 2 - 3 days. It might take you 1 - 2 weeks to work back into a surplus, but that way you are slowly letting your body get accustomed to the added calories without throwing an extra 1000 calories at it straight after being in a deficit.
You can take a break while on vacation, sure. It's good to enjoy time with family and holidays so you don't always have to be dieting. If you're not preparing for a show or anything then by all means take that week to relax and enjoy a good time.