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Mon 26 Apr, 2010 08:10 pm
Quote:But the big savings come from owning a business and deducting everything related to it. Landlords can also depreciate their commercial properties and { } expenses like mortgage interest. And that’s without doing any creative accounting.
According to the logic of this text, I think we need to insert a verb in the curly brackets to collocate with "expenses". What verb (transitive) do you suggest?
can depreciate / properties
and
deduct / expenses
But the writer of the sentence may feel that properties and expenses can be depreciated, so it would be:
can depreciate / properties . . . and . . . . expenses
depreciate their commercial properties and claim expenses like mortgage interest.
Expenses can be claimed against taxable income to reduce taxable income.
ie
total gross income from rental property $100,000 (the amount paid by the tenent)
expenses relating to earning that income.
fees paid for legal advice $5000.00
repairs and maintenance $2000.00
mortgage interest $25,000
total expenses $32,000
gross income $100,000
total expenses $32,000 (subtract this amount from gross income)
taxable income $68,000 (This is the amount you will pay tax on)
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