18) Buy Similar property
Similar property can be grouped together for income tax purposes.
The IRB has indentified categories such as residential , commercial and vacant land.
If you own two property in the same category , you can reduce the taxable profit made from one property with the loss, if any incurred from the other.
Property investors are also exempt from real property gains tax for all disposals on on or after 1st April 2007.
However , taxpayers who are trading property – buying and selling in order to generate income – are liable to income tax.
“ This exemption is meant for taxpayers who invest in property for a passive income”
Tax deduction :
Taxable income received from renting out a property in a particular grouping such as residential can be reduced if a loss was incurred by another property in the same group.
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