Till 2017, paying for a rented, private property qualifies you for a tax credit. However, this has changed now. In order to qualify for this, you must possess the following.
- Using the rental as your primary or exclusive residence.
- Rented private accommodation and paid the tax.
Each tenant will be eligible for a tax credit, which would be a certain figure annually according to budget 2023. Besides, this credit is available from 2022 to 2025. For the rent that is paid in the year 2022, you can make a claim at the beginning of the year 2023 or post that. People who receive social housing assistance are not eligible for this credit. If in case your landlord does not live in your country, it is not required to deduct or subtract tax from your rent. It is the collection agents who will prepare the yearly tax returns for the landlords who live outside the country.
You might be eligible for deducting a portion of your rent from your taxes if you utilize the property for your business or trade. Depending on the square feet of the property which is being used for your trade or business, you can deduct a certain amount. You must, however, adhere to the guidelines for home-based businesses. If you wanted to know more about rental property tax deductions, it is better to contact a tax relief professional.
What to consider when choosing a tax relief professional?
Choose a professional who is well-experienced always if you looking for the best assistance. Check how many clients they have handled till now. The more the number of clients, the better services you can expect from them. More clients simply indicate that their services are in demand. Remember, some tax relief specialists may not provide you with the best services.
Hence, it is important to do proper research. You could take the help of the client reviews online to understand whether they offer the best services to their clients or not. Last but not least, do check the qualification of the tax relief specialist before hiring. You can also take the suggestion from your friends on this.