Building Your Dreams: Investing in Bricks and Mortar
In This Chapter
Deriving rental income
Working out what you can claim
Separating business expenditure from private usage
Calculating your tax deductions
I nvesting in real estate can range from buying residential property or land, to commercial property such as office space, shops and factories. If you plan to invest in bricks and mortar, you buy land and buildings for income and capital growth.
Significant tax benefits may be gained from investing in real estate. In this chapter, I identify these tax benefits and explain what you need to do to qualify for them.
Collecting the Rent
One of the great pleasures of leasing a property is the regular rental payments you receive from your tenant.
You’re normally liable to pay tax on rental income in the financial year you receive the payment. If you own an income-producing property, you may be liable to pay tax on the following types of transaction: