Rental income is taxable, but expenses associated with your investment property can be deducted and used to reduce your overall taxable income. This typically results in a tax refund. Therefore, maximizing your allowable deductions can decrease your taxable income and increase your refund. If you co-own a rental property, you must report your portion of rental income and expenses on your tax return according to your ownership percentage as indicated on the property’s legal title.
For individuals investing in property, a significant portion of their tax deductions comes from the interest on their mortgage. Additionally, they can claim deductions for other expenses such as property management fees, rates, loan-related costs, as well as maintenance and repair costs.
Note: This information is for general guidance only and may not suit your individual circumstances. Please consult a qualified professional before taking action.
