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’s 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
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.