Property Deficit, to ensure staying in the green during renovations.

A tax mechanism that allows owners of rental properties to deduct the expenses related to these properties from their rental income. This can result in a reduction of the income tax to be paid.

When the deductible expenses exceed the rental income, it is referred to as a property deficit. This deficit can be offset against the owner's overall income, within a certain annual limit. This offsetting allows for a reduction in the amount of income tax to be paid.