Can I claim renovations on my investment property? What’s the difference between current and capital expenses? How do these affect my tax return?
Yes, you can claim renovations on your investment property. Current expenses are costs for maintenance and repairs, deductible in the year incurred. Capital expenses, like major renovations, enhance property value, and must be depreciated over time. Both impact your tax return differently; current gives immediate benefits, while capital affects long-term gains.
Yes, you can claim renovations on your investment property. Current expenses are costs for maintenance and repairs, fully deductible in the year incurred. Capital expenses, like renovations, improve property value but are depreciated over time. Both affect your tax return differently, so consult a tax advisor for specifics.