Owning an investment property can be lucrative, especially if done prudently. An investment property is used mainly to generate income, either through passive income by renting it out or by flipping it to generate capital gains income. Purchasing an investment property either to flip or to rent both have their pros and cons. A part of what we do is to assess which is right for you.
When you own an investment property, there are several expenses that can be deducted. Expenses such as interest costs, utilities, property tax, repairs and renovations can be deducted. Some expenses are only deductible in the year you incur them (Current Expense), while some expenses are deductible in future years (Capital Expense).