Rands Tax & Business Consultants

What Deductions Can I
Claim as a Rental Property Owner?

Rands Tax & Business Consultants

When you consider the tax rules before investing in rental property, it is usually the most profitable. Because there are various deductions available, it is important to understand which ones you are eligible for in order to maximize your bottom line. Furthermore, it is important to understand how taxes affect your rental income and the eventual sale of your property.

As a rental property owner, you can deduct various expenses related to buying, operating, and maintaining the property. These expenses may include mortgage interest, property tax, operating expenses, depreciation, and repairs.

You can deduct necessary expenses incurred in managing, conserving, and maintaining your rental property. Interest, taxes, advertising, maintenance, utilities, and insurance are all examples of necessary expenses. You can deduct the costs of certain materials, supplies, repairs, and maintenance you perform on your rental property to keep it in good working condition.

The expenses paid by the tenant can be deductible rental expenses. You can deduct the same amount as a rental expense if you include the fair market value of the property or services in your rental income. The cost of improvements is not deductible. A rental property is improved only if the funds are used to improve, restore, or adapt it to a new or different use. The cost of improvements can be recovered through depreciation.

For more guidance and help with deductions, taxes, and planning, be sure to consult a qualified Tax Professional.

At Rands Tax and Business Consultants, we provide proven Taxation, Accounting, and Mortgage Broking Services to a diverse clientele, including small and medium-sized businesses. We also assist Property Investors with their Income Tax Returns, including Rental Property Tax Issues, Capital Gains, and Negative Gearing.

Not only that, since we are Accountant plus Mortgage Broker, we know how to claim an interest in the most accurate way. Please feel free to connect with Rands Tax and Business Consultants on 0434391331 or drop a message via https://randstax.com.au/contact-us and we will be happy to assist you!

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