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| *Ostroff, Fair and Company>>>Canada Taxes |
Deductions question? |
Can a landlord use Water and Sewerage bill payments, and Water Heater Payments as a tax write off? I know that landlords have to claim rental income on their taxes as income, but are there any write off's? I'm thinking about buying an apartment building, but I can't find anything that says what is a deduction. Any money you put into your apartment building would be deductible, from what I know. If you pay the water or gas payments for the tenants, that's an expense that you use to reduce your income when you do your taxes. Similarly with ANY expense that you put into the property or is related to the property such as repairs, improvements, property taxes, etc. And, yes, you are wise to educate yourself first. Purchasing an apartment building is a HUUUUUUGE investment --- you need to go into it fully armed with as much info as possible and your eyes wide open! Good luck to you! ------------ EDITED TO ADD: Oops! I just saw you are in Canada. I answered from a United States perspective. Not sure if the same tax info would apply to you as it does in the US. All cost to you are Write off,s but the biggest is Depreciation, - and you largest expense will likely be Property Taxes, assessed as Commerical property. You need to educate yourself before jumping into this . "Deduction" is slightly different iin every case. For example it is different in UK Payroll from US Payroll, just as it is different for business deductions. http://www.irs.gov/taxtopics/tc414.html... Hello there, All expenses used to generate business income are deductable. You should not move forward without a tax accountant and a real estate lawyer on your team. As said above - get educated in the field first. (If you were a carpenter: Measure twice - Cut once) Good Fortune to You! |
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