The Income to Be Declared in the Income Tax Return

The income to be declared in the income tax return which relates to property investment consists of the gross rental income from the tenant. The deductions that can offset the income include:

A) interest on the loan taken out to purchase the property.
B) a portion of the set-up costs of borrowing the funds which are allowed to be deducted over a 3-year period.
C) a capital depreciation allowance of 4.0% of the cost of the building is allowable for 40 years.
D) a capital expense such as the addition of an air conditioner to the property.