How to Save Money on Your Tax Bill as a Property Investor


Many people are unaware that becoming a property investor can help to reduce tax. There are a range of property tax reduction and tax benefits out there if you are a property investor, you just need to know what they are in order to get them.  If you are a property investor, or you are looking at becoming one, do not let your tax bill stop you from investing. Here are just a few ways in which you can save money on your tax bill as a property investor.


Rent Expenses

If you decide to become an investor in a rental property, there are many expenses that you can claim back to reduce your tax bill at the end of the year. These include things such as water rates, tenancy adverts, and gardening. You may also claim back tax for travelling that is done through this property such as property inspections or collecting rent. Ensure you keep a check on all of these and if you have proof, you can claim all these expenses back as a tax deduction at the end of the year.


If you are using a loan for the sake of investing in a property, any interest charged on this can be claimed back as a tax deduction, read more about it here. Whether this is interest charged through the mortgage on your investment property, borrowed money to increase your shares, or any other loan that is related to your property investment. All of this can be claimed when doing your tax return.

Decreasing Financial Value of Buildings

Usually, those looking to invest in a property want to ensure that the building is to a good standard and won’t lose value over time. Actually, those most aware of how to save money on their taxes know that depreciation of buildings pays. Depreciation is something that any property investor will be aware of over time, and it means that the value of the house will go down as general wear and tear affects its worth. Depreciation comes as a tax deduction for anyone investing in a property, meaning instead of having to pay for it regularly, the lower value of the building is calculated at the end of the tax year and then claimed on your tax return. This means you do not have to spend any more on your investment property throughout the year.


Hiring a real estate cpa to help you with your costs could save you even more money in tax returns. The fees that you pay for help with your tax are also claimable each year as tax deductions when investing in property. This includes many fees such as travel to get tax advice and any appeals on your behalf. You should also read What is foreign earned income exclusion.

Property investment can be difficult to understand, therefore if you want to save the most on your tax bills as an investor, you may want to hire tax preparation services to help you claim on everything to get the largest tax deduction possible.