Tax on Rental Property is the benefit that comes with owning and renting a property which is more or less like business. Certain things like depreciation of the value of rental property, insurance premiums related to it, its interest or mortgage, bills for maintenance and repairmen hold a huge importance. These things are the rental deduction the payer can enjoy while paying tax on rental property;
• One who is buying a new rental property cannot claim the whole amount as expenses. Instead the property will be slowly depreciated for a long period of time. The depreciation period varies from 20 to 30 years though it depends on the country rules.
• Being a property owner the payer will have to buy a number of insurance policies like building insurance, home contents insurance, landlord liability insurance etc. The tenant will be able to get the premiums on the landlord insurance policies and tax deductions as well.
• If the person has taken any loan for the paying for the rental property the interest charged on the bank or the lender will be included in property tax deductions.
• The money that is used for the maintenance of the used property is also included in tax deductions. The maintenance charges should boost the total value of the house.
• The travelling expenditures that the landlord rakes up for rental activities are also tax deductible.
• Deductions of tax on rental property also include expenditures in finding tenants, commissions paid to third parties or brokers for arranging tenants, payments made to accountants or lawyers etc.
For proper examples of property tax calculations for a rental property, you may visit the following website where numerical examples for rental property and self-occupied property are mentioned: http://www.accommodationtimes.com/legal/property-tax/property-tax-on-capital-value-system/