As the year winds to a close, it’s time to start thinking
about your taxes. We know it’s not a pleasant thought, particularly in the
middle of the holiday season, but the earlier you start working toward
gathering the necessary records and receipts, the easier you make it for your
accountant – and the larger your tax break will be!
To get you started, here is a list of landlord tax deduction tips:
1. Interest. Often a landlord’s biggest deduction, the
interest landlords can deduct
includes mortgage interest payments on loans used to acquire or improve rental
property and interest on credit cards for goods or services used as part of the
landlord business.
2. Depreciation. Landlords get back the cost of real
estate through depreciation, which involves deducting a portion of the cost of
the property over several years. Your accountant can help with the figures.
3. Travel expenses. This includes gas, mileage, and travel
expenses for trips made on behalf of the business – trips to the hardware store
for supplies needed to fix something, trips to another town or state to look at
possible investment property, even traveling to and from your rental property
to speak with tenants.
4. Repairs. Keep excellent records and receipts of money
spent on ordinary, necessary repairs and maintenance of the rental property,
because it’s all deductible in the year in which those repairs were made.
5. Home office. Provided they meet certain minimal
requirements, landlords may deduct their home office expenses from their
taxable income.
6. Insurance. You can deduct the premiums you pay for
almost any insurance that pertains to the rental business, including fire,
theft, and flood insurance for the rental property and landlord liability
insurance. And if you have employees, you can deduct the cost of their health
insurance as well
Contact ATS Inc today to find out how we can help with your tenant screening services.
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