It’s officially tax season. While it may not be your favorite time of year (unless you’re an accountant) you may be able to save more money this time around. We’ll show you tax deductions that every landlord should know.
Consider these deductions when filing your taxes this year:
Chances are, you paid interest on the mortgage/loans that you incurred to purchase your property. As a landlord, deducting part of the interest is an advantage that you have over other homeowners since this is a business expense.
In this case, depreciation is the ability to deduct an amortized amount of the cost of purchase over several years. Learn more about this tax deduction and find out if your property meets the criteria at Turbo Tax.
The costs associated with repair expenses incurred at the property are another thing to consider. These costs can include supplies and labor, but only if you are making a repair to the property and not making an improvement to it. Read more about the difference between repairs and improvements at IRS.gov.
The mileage you accrue when using your personal vehicle for rental-related tasks can count can be counted as a deduction. This could include picking up rent checks, transporting supplies, etc. Talk to your tax advisor and take a look at the current Standard Mileage Rates.
5. Home Office
If you have an office in your house that you conduct your landlord business out of, then you may be eligible for this deduction. Find out if your office qualifies at IRS.gov.
All landlords should keep in mind that their rental property is a business. Use this list to get started. Remember, you should always check with your tax advisor regarding these and other real estate related tax questions.