Claimable Expenses for Investment Property

Claimable Expenses for Investment PropertyDid you know that there is a nice list of claimable expenses that can help minimize the tax that you have to pay on the rental income of your investment property? Not only will these claimable expenses reduce the tax you have to pay but they also help make your property investment more tax … efficient.

So what exactly are these “claimable expenses” I hear you ask? You can…

  1. Get interest relief on the money borrowed for the purchase of the property – You must be registered with the PRTB to claim mortgage relief
  2. Claim expenses for repairs, maintenance, wear & tear, insurance, legal & accountancy fees – However you may not claim for any work / labour that you carry out yourself!
  3. Claim expenses on any good or services provided by you, the landlord which are not paid for by the tenant e.g. Internet, Telephone
  4. Apply for a “wear & tear” Capital Allowance of 12.5% per year for 8 years

All these expenses can be deducted from your gross rental income tax. Of course terms and conditions apply, such as: all expenses claimed for must be for business purposes only & not of capital gain!

There is 1 comment for this article
  1. Jonathan Paul at 12:57 pm

    Property investment is a little more risky than it has been in the past, and it is definitely harder to make property work for you than it has been in the last decade or so, but it is possible to still make money from it.However, the profitability of buy to let property largely depends on whether you would have to take a mortgage out to purchase the property or not.Thanks a lot for such a nice post .
    Keep blogging

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