Property Management, Tenants

Rental Property Tax Write-Offs You Need to Know

Tax deductions are good. For your rental expenses, there are deductions to your taxes which need to be determined provided you have their records. It pays to be always ready instead of stressing at tax time. To further help you, here are a few tax deductions you should know:

Rental Property Tax Write-Offs You Need to Know

Loan Interests and Expenses While Traveling

As long as the loan is rental-related, you can always deduct the interest on the loan you are paying. The interest may come from loans which you may have never considered.

Rental owners can exclude the interest on the loans they made during the acquisition of the rental property.

If refinancing the property, you can also deduct the interest on the loans you’ve made. Uncommon but also very possible, are the interests on the credit card purchases of the services or materials for your rental property.

The interest of personal loans to finance the rental property is also subject to deductions.

Any of the expenses on your travels related to the rental properties can also be deducted. From meals to lodging and transportation, you can exclude them from being subjected to tax as also mandated by the Internal Revenue Service (IRS).

Maintenance, Repair of the Rental Property and Asset Depreciation

Any repair made to return your property to its original condition is entirely tax deductible. But not so much so for maintenance.

Expenses for maintenance which are tax deductible are cleaning supplies, landscaping, pest control, and bulbs, smoke and fire detectors, and air filters.

Determining the depreciation of your assets can be very hard thus it is best to involve your accountant on this one. Any asset which is at least a year older is subject to depreciation.

From the building to the carpeting, you can save on tax when you determine their actual depreciation values.

Any Kind of Insurance, Selected Taxes and Supplies

Premiums which are tax deductible include flood, fire, and theft insurance; and landlord liability insurance.

Additional tax deductibles are local sales tax, county sales tax, state tax, property tax, and real estate tax.

Rental owners do not bother to include these as deductibles because the IRS is very critical to home office deductions.

But if you are allocating space in your home for rental purposes then it is wise to include them as deductibles. Any supplies bought for your rental property or business is also included.

10 Rental Property Tax Write-Offs You Need to Know

Rental Property Utilities and Hiring Services From Professionals

Any rental property utilities paid are entirely deductible. It includes, but are not limited to, gas, water, sewer, TV/internet/cable, and garbage/recycling.

Any operating expenses for lawyers, accountants, or other professionals are considered to be deductible. In some instances, you might need a lawyer to evict a tenant or terminate his contract if there are violations.

There are also instances where the landlord decides not be the landlord anymore but rather hire a management company to oversee the rental property — Yes, Pyramis Company’s fees charged on the property are a write-off!. This case is recognized by the IRS and is objectively covered by the law.

Finally, any expenses for advertising are also deductible no matter the venue. It may be on TV, online, radio, or printed.