Owning a property requires you to submit the right amount of taxes at the right time. The tax you’ll need to pay is affected by the type of property that you have, size, monthly income it generates, and many more. As a wise property owner, you should make the most of your investment by taking advantage of the tax deductions available for your investment property. If you’re still new to this and don’t have much idea about it, here are the tax deductions every property owner should know.
This is a common term when you own a car or any vehicle. As a property gets older, some of its features depreciate in value. Not everything in your property depreciates. When you consult an expert, you’ll get to know which things in your property depreciate over time.
Floor and window coverings and cooling/heating systems are just some of the few examples of things that depreciate through time. However, if you have off the plan apartments as your investment property, depreciation won’t apply to it since there’s no structure built yet. However, if the depreciation schedule is well prepared, you could enjoy many tax benefits no matter how old your property is.
Maintenance and Repair Claims
When you do maintenance and repairs in your home, you can’t have a tax claim for it. However, when you do it on your rental or any property investment, it becomes a legitimate business expense that you can apply a claim for. Be sure to note all the expenses you have spent to keep your investment property at its finest condition – from house cleaning, pest control, painters, and other more ways to maintain the functionality and look of your property.
Landlord Insurance Claim
The landlord’s insurance claim is perfect when there’s damage to your property. It doesn’t matter whether the damage is caused by natural disasters, tenants, or other outside events. Aside from that, the landlord’s insurance also serves as an extra safety net just in case your tenants fail to settle their payments on time and fall into arrears. Another great thing with this claim is that you can control whether you want to deduct the cost or not.
Marketing Costs Claim
When you own an investment property, you’ll need to advertise it took to reach more potential customers just like any other business. To attract the right type of audience, it is important that you formulate the ads properly to suit what you need. Although you’ll end up spending more with ads, you can still claim those entire amounts you spent later on. Those expenses can be claimed as a deduction against your income.
Those were just some of the few tax claims you could get when you have in investment property. By knowing all those different tax claims, you can definitely make the most of your precious resources. When your investment property is going well and provides you with steady cash-flow, you can apply for the claim and earn back extra charges.