Attention: Rental Home Owners
Home Owners, it is that time of year again to report to Uncle Sam. We want the process to be smooth for you. As part of our Property Management Services we provide Owners with monthly statements, quarterly packets with all your invoices, year-end reports and 1099’s. These documents help you go straight to your CPA or accounting professional with the info you need for your investment property, hassle free!
You May Not Know About These 10 Rental Property Tax Write-Offs!
(As always, the information provided below is just for general informational purposes only and under no circumstances whatsoever should it be considered legal advice, please consult an attorney or your tax professional for details or requirements.)
- Interest on your rental-related loans. You cannot deduct the amount of the loan (the principal); you can, however, deduct the interest on the loan that you pay in any given year.
- Travel Expenses If you have any travel expenses related to your rental property, such as transportation, lodging, and meals, they’re fully deductible. Also, if you use your personal vehicle in your rental property business.
- Repairs and Maintenance. A repair is any work that puts the property back in its original condition. Reasonable and necessary repair costs for your rental property are tax deductible.
- Depreciation is a process through which you deduct long-term assets (assets you hold for more than one year) over many years.
- Insurance premiums, including those for landlord liability, theft, fire, and flood, are tax deductible.
- Real estate taxes, property taxes, and state, county and local sales taxes are deductible.
- Home Office & Office Supplies In addition to deducting for your home office, you can also deduct for office supplies used in carrying out your rental business.
- Utilities If you pay any utilities for your rental property, you can deduct them.
- Professional Services If you need to hire a lawyer, accountant, or other professional, that cost is deductible and considered part of your operating expenses.
- Limitations There is a limit to how much you can deduct: most landlords can deduct up to $25,000 against their rental property income. As always, keep receipts and records of payments, in case the IRS has questions.