Investment Property Tax Deductions & Taxation Benefits
It is essential to get appropriate advice regarding your investment property Tax Deductions & Taxation Benefits…
Property investment has a number of tax deductions, taxation benefits and advantages which could help you acheive your goal of owning an investment property or serveral in fact. Below are just a few investment property tax deductions and benefits you can draw on while you own an investment property.
- Depreciation: Depreciation is a expense which can be claimed as a tax deduction. Depreciation relates to the decrease in value of the fixtures & fittings and building due to wear and tear. With an investment property there are a lot of things that can be written off as depreciation and work towards reducing your tax.
- Mortgage & Loan Costs: Loans taken out for investment purposes are tax deductable. This includes the interest charged on the loan; the fees relating to mortgage insurance are also deductable. This is very important to remember especially if you are taking out a loan to buy one or serveral investment properties.
- Property Management Costs: Most investors choose to have their investment property professionally managed. As a result agent’s fees are a deductable expense. Most estate agents will send you a end of financial statement with all the costs involved in handling your investment properties making your job easier when filing your tax return.
- Insurances: Premiums relating to your investment property are deductable. These frequently include landlords insurance, building insurance, and public liability.
- Repairs and Maintenance: Depending on the type of investment property you have costs relating to repairs and maintenance whether that be gardening, plumbing or similar can be deducted.