Tax Tip 1 - Property investors should aim to borrow as much money as possible against the original cost of an investment property. Any addition funds should be utilised to pay off the mortgage on your main residence. This will ensure that you obtain maximum tax relief on all your investment property borrowings.
Tax Tip 2 - If you borrow money using a personal loan e.g. as deposit money / repairs then the interest charged on this loan can be claimed as an expense to reduce your profits and therefore reduce your tax bill.
Tax Tip 3 - The same principal above can apply if you use a credit card. However, records will need to be kept to identify the amounts relating the let property.
Date:20 April 2007
|
