Common tax deductions for rental property owners
Tax season is wrapping up soon. As an investor and/or business owner, do not be in a rush to file your taxes until you have gathered sufficient documentation to take advantage of the maximum tax deductions. Remember, filing an extension is ok!
If you own rental properties, here are some common tax deductions to keep in mind:
Advertising: Costs of advertising for tenants, listing rental units, subscribing to listing websites.
Auto and Travel: Expenses for traveling to the property for maintenance, management, or rent collection.
Cleaning and Maintenance: Costs for cleaning services and general upkeep. Routine maintenance.
Commissions: Fees paid to rental agents or real estate managers.
Insurance: Premiums for property insurance, Mortgage Insurance, Flood Insurance, Umbrella insurance.
Legal and Other Professional Fees: Fees paid for legal advice, accounting services, and property management.
Management Fees: Payments to property management companies.
Mortgage Interest: Interest paid on loans used to acquire or improve rental property.
Repairs: Costs of repairing the property (not including improvements, which must be depreciated).
Supplies: Items such as cleaning supplies and tools, short-term rental cleaning supplies, paper products, etc.
Taxes: Property taxes and other related taxes.
Utilities: Costs of utilities provided to tenants.
Depreciation: Deduction for the cost of the property over its useful life.
For more real estate tax tips, book an appointment with us at www.lobecpa.com and we will help you tax plan and build wealth!