Investment Property Tax

What Is Investment Property Tax?

Investment property tax is a complicated tax which confronts all owners of investment property. There are number of things about investment property tax which require careful analysis such as:

  • Determining what expenses can be deducted at the point at which they are incurred
  • Determining which costs can be depreciated over time
  • Determining which form part of the property‚Äôs capital appreciation

Investment Property Tax Deductions

Most likely you are eligible for investment property tax deductions such as:

  • Renovations to your investment property
  • Repairs and maintenance
  • Loan fees incurred
  • Interests incurred
  • Insurance cover
  • Cleaning

When is Investment Property Tax Levied?

Real Estate investment is most commonly included with your personal tax return. Bear in mind however, three important considerations.

  • The capital gains tax to be paid when you sell your property.
  • Negative gearing deductions for which you are eligible.
  • Investment property tax deductions as outlined above.

Things to Remember About Investment Property Tax

There are number of things you should remember about investment property tax:

  • Do not attempt to cope with investment property tax by yourself.
  • Seek expert professional advice on investment property tax to ensure that you do not miss out on deductions to which you are entitled.
  • Employing a quantity surveyor to assess the value of depreciable items is money well spent.
  • Remember, depreciation applies to old as well as new properties.