Generally, the more deductions investors can claim on a property. For property investor, the important thing is to claim many deductions as you are rightfully designated to. The following are the most common tax deduction you can claim on your investment property. They are,
The largest tax deduction in a negative gearing arrangement is interest. The interest acquired on money you have borrowed for the property is tax-deductible when provided your property is available for rent.
2. Tenancy costs:
The cost of advertising for tenants is tax-deductible. So are authorize fees paid to property managers who secure tenants on your behalf. Any expense acquired in relation to adapting or changing the lease with your tenant is also tax-deductible.
3. Repairs and Maintenance:
Due to tenant wear, the cost of restoring anything to its original condition and also tear is tax-deductible, and it is not an initial repairs. When the property was purchased, and that existed the damage.
4. Capital works:
Capital works costs are normally not tax-deductible upfront. Capital becomes part of the building and land such as structural alteration, extension or and structural improvement.