I commonly see these expenses being wrongly claimed:
1. Purchase price of the rental property
2. Interest on loans not used for the rental
3. Capital portion of mortgage repayments
4. Costs of capital improvements to property
5. *Real estate & legal fees while selling property.
*𝘚𝘰𝘮𝘦 𝘦𝘹𝘤𝘦𝘱𝘵𝘪𝘰𝘯𝘴 𝘢𝘱𝘱𝘭𝘺 𝘵𝘰 5 𝘢𝘣𝘰𝘷𝘦.
𝗦𝗼 𝗵𝗼𝘄 𝗰𝗮𝗻 𝘆𝗼𝘂 𝗮𝘃𝗼𝗶𝗱 𝘁𝗵𝗲𝘀𝗲 𝗺𝗶𝘀𝘁𝗮𝗸𝗲𝘀?
Learn the basic rules.
✅ Remember, you cannot claim deductions for
– Private expenses
– Capital expenses
– Unrelated expenses
✅ 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝘀 include:
– Buying a capital asset or
– Increasing value of an asset
✅ 𝗣𝗿𝗶𝘃𝗮𝘁𝗲 𝗲𝘅𝗽𝗲𝗻𝘀𝗲𝘀 are those
– You buy
– Pay for
– That are for your own benefit
(𝘙𝘢𝘵𝘩𝘦𝘳 𝘵𝘩𝘢𝘯 𝘵𝘰 𝘨𝘦𝘯𝘦𝘳𝘢𝘵𝘦 𝘳𝘦𝘯𝘵𝘢𝘭 𝘪𝘯𝘤𝘰𝘮𝘦)
📘 Want more tips?
𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗺𝘆 𝗳𝗿𝗲𝗲 𝗯𝗼𝗼𝗸:
10 Big Property Tax Mistakes That Cost Thousands
https://lnkd.in/g_W7WNQK
Chapter 8 from my book
“Overstepping the line with expense claims”
In the chapter, I explain:
– Ring-fencing rules
– The consequences of overclaiming
– How expenses vary with property types
– Legitimate deductions vs. over-claiming.
💼 𝗜 𝗵𝗲𝗹𝗽 𝗞𝗶𝘄𝗶 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗼𝘄𝗻𝗲𝗿𝘀 𝘀𝗮𝘃𝗲 𝘁𝗵𝗼𝘂𝘀𝗮𝗻𝗱𝘀 𝗶𝗻 𝘁𝗮𝘅𝗲𝘀 𝗯𝘆 𝗽𝗿𝗼𝘁𝗲𝗰𝘁𝗶𝗻𝗴 𝘁𝗵𝗲𝗺 𝗳𝗿𝗼𝗺 𝗰𝗼𝘀𝘁𝗹𝘆 𝗲𝗿𝗿𝗼𝗿𝘀.
🔔 𝗙𝗼𝗹𝗹𝗼𝘄 𝗺𝗲 𝗳𝗼𝗿 𝗺𝗼𝗿𝗲 𝘁𝗮𝘅 𝘁𝗶𝗽𝘀 𝗮𝗻𝗱 𝗶𝗻𝘀𝗶𝗴𝗵𝘁𝘀.
✉️ 𝗝𝗼𝗶𝗻 𝗺𝘆 𝗺𝗮𝗶𝗹𝗶𝗻𝗴 𝗹𝗶𝘀𝘁 for tax tips:
https://lnkd.in/gEjUQKMp
