Did 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…
- Get interest relief on the money borrowed for the purchase of the property – You must be registered with the PRTB to claim mortgage relief
- 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!
- Claim expenses on any good or services provided by you, the landlord which are not paid for by the tenant e.g. Internet, Telephone
- 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!