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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 15274
Experience:  10 years experience
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I want to lower my taxes by investing in a property. Can I

Resolved Question:

I want to lower my taxes by investing in a property. Can I also live in it? Any other tax suggestions? I earn $300k/year and currently renting a property and don't have a real tax strategy to lower my taxes.
Submitted: 3 years ago.
Category: Tax
Expert:  Wallstreet Esq. replied 3 years ago.

Wallstreet Esq. :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarification.

Wallstreet Esq. :

To be treated as a rental property for tax-loss purposes, your personal use of the place can't exceed 14 days or 10% of the days the unit is rented during the year, whichever is greater.

Wallstreet Esq. :

In terms of a tax advantage, if you purchase a primary residence to live in especially in high tax areas in NY such as Nassau or Westchester County, you can offset your personal income taxes by the real estate taxes you pay, including mortgage interest.

Wallstreet Esq. :

If you purchase a rental or investment property their are several more tax deductions for you and will reduce your overall tax rate, especially if you can claim a loss through depreciation and improvements to the property.

Wallstreet Esq. : Tax Deduction Checklist - Rental Property




























































































































































































ItemDeductibleNon- Deductible
Accounting FeesYes
AdvertisingYes
Agent Fees & CommissionsYes
Bad DebtsYes
Boarder's CostsYes
Body Corporate FeesYes
Borrowing ExpensesYes
Building & Structural ImprovementsYes
CleaningYes
Commissions & Management FeesYes
DepreciationYes
Early Termination of Lease Payments
No
Electricity & Connection CostsYes
Eviction proceedings against tenants
No
Bank ChargesYes
GardeningYes
GasYes
Head Rental*Yes
InsuranceYes
InterestYes
Land TaxYes
Lease IncentivesYes
Lease Premium
No
Lease Surrender Payments
No
Legal Fees not associated with evictionYes
Mortgage InsuranceYes
Municipal Rates & TaxesYes
Office SuppliesYes
PostageYes
Repairs excluding initial repairsYes
SecurityYes
Solicitor DisbursementsYes
TelephoneYes
TravelYes
WaterYes
Pre purchase travel expenses for properties not purchased
No
Wallstreet Esq. :

http://www.propertyinvestment.net.au/tax-deduction-checklist.htm

Wallstreet Esq. :

The above list shows the many tax advantages of owning an investment property.

Customer:

Thanks for your response. Just to confirm, if we buy a property and live in it (as our primary residence) and get an interest only loan for a period of say 5yrs, we can offset the entire yearly interest paid against my income taxes?

Wallstreet Esq. :

Home mortgage interest is deductible on your income taxes if you itemize. You can deduct the interest on up to one million dollars of home mortgage debt, whether it is used to purchase a first or a second home

Customer:

thanks very much, very useful.

Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 15274
Experience: 10 years experience
Wallstreet Esq. and other Tax Specialists are ready to help you

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