It’s Almost Tax Time – Rental Property Deductions

Time to VOTE!

Time to VOTE!

It’s almost tax reporting time and some of you have been rental property owners for awhile and some have you have started!

Common business deductions on rental Properties include assessments and Condo fees are often allowable as maintenance expense and brokerage fees can be considered either marketing expense. If you have hired us as a property manager for your property that is also typically allowable as an operating cost to be deducted on your property against the rental income earned — This saves you time and headaches from dealing with the tenant on your own for various book keeping and maintenance issues.

If you have just started to be a rental property owner, be sure to keep good records of expenses so you have them ready for next year’s tax filings.

Other Common Expenses
In addition to repairs and depreciation, some of the other common expenses you can deduct are:

*Insurance
*Taxes
*Lawn care, Snow Removal or other landscaping related costs.
*Repairs and Maintenance (plumbing, electrical, etc.)
*Utilities: Gas, Electric, Telephone, Internet, etc. (if owner pays and tenant doesn’t or when property sits vacant).
*Tax return preparation fee
*Legal fees
*Automobile (mileage or actual costs) for usage while conducting business on your rental property.
*Office supplies, Postage
*Losses from causalities (hurricane, earthquake, flood, etc.) or thefts

As always, we recommend that you consult a tax preparation professional or CPA to find out what is allowable in your particular filing situation and what deductions might be better for you to take than others.

Let me know I can answer any of your real estate questions or you know of someone who would benefit for my services! Referrals are always appreciated!

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