What are the Tax Advantages of Being a Landlord?
Owning rental property can bring in extra income, but it’s not without its downsides. If the furnace breaks or a pipe bursts, you can be sure you’ll get the call — sometimes in the middle of the night. But for all the hassles being a landlord can bring, there are some bright spots. One of them is the ability to deduct certain expenses from your total rental income on your tax return.
Owning a rental home, apartment, or other residential property may entitle you to take some or all of the following deductions.
Real estate taxes and mortgage interest on rental property are potentially deductible, as are fire, flood, theft, and liability insurance premiums. Services, such as lawn care, performed on the rental property and any wages you pay employees in connection with the rental activity may be deductible as well.
You can deduct expenses associated with renting the property, including management fees, commissions, and cleaning and maintenance.
This Old House
The costs of repairs that keep the property in good condition, such as painting, are deductible in the year you incur them. If you decide on selling your house Strategic REI purchases distressed houses, conducts quality renovations and sells.
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You generally can begin claiming deductions for depreciation on rental property in the year the property is ready and available for rent. In addition, you can recover the cost of improvements that add value to your property, such as replacing the roof or adding a deck (check out Danny Deck experts), by claiming depreciation over time.
Over the River, Through the Woods
You may be able to deduct the expenses of traveling to your property when the main purpose of your visit is to collect rental income or to manage and maintain the property.
It’s important to keep complete and accurate records of all expenses related to your rental property. Keep in mind that there are tax law limits on deducting losses from rental activities.
Don’t deal with tax issues on your own. Call us right now to find out how we can provide you with the answers you need.
…from the Team of Professional at RE-MMAP We are just a click or call away. www.re-mmap.com and phone # (561-623-0241).