Tax deductable expenses tips when buying a property...

Investment property owners can claim deduction and depreciation against income on the property. There are three main classes of deductions available to investors: 1. Revenue deductions - these include interest on the loan as well as ongoing maintenance and recurrent expenses such as agent fees, council fees, advertising charges, bank fees, body corporate fees, cleaning expenses, gas, water, gardening and insurance. 2. Claims for capital items - large capital items such as a hot water service, white goods, etc. are subject to depreciation. This means the owner must claim the cost over a number of years rather than all at once. Depreciation schedules are set by the Taxation Department and range from a few years to more than 20 years. 3. Claims for building allowances - owners can also claim depreciation of capital works, specifically for building and landscaping. The current rate is 2.5% over 40 years. Contact us for more information on our home loans!

The information was taken from 1888articles.com.