IRS Tax Deductions

IRS Tax Deductions

One of the biggest benefits of owning rental properties is the tax write-offs that it offers to landlords to cover the expenses associated with managing rental properties.    Blow are the top 10 rental property write-offs that you can deduct from your taxes to offset any other income.   Keep in mind that this is not tax advice and you should consult your CPA or Tax Advisor before using these deductions.

1) Interest Rate Deductions:  Typically, you’ll have be able to deduct interest on your loan to buy your rental property. Interest on loans to refinance your rental property can also be deducted from your taxes. In addition credit card interest for goods and services bought for the rental property can also be deducted.

2) Depreciation:  IRS tax code permits for depreciation of rental property assets.   This creates a wonderful opportunity to hold rental properties long-term.   Consult with your CPA for the exact amount of depreciation since it’s a complicated consideration.

3) Repair and Maintenance:  Any on-going maintenance and repair costs are deductible from your taxes.

4) Travel Expenses:  If you have to travel to inspect your properties, then these travel costs are legitimate deductions from your taxes.

5) Insurance:  Insurance premium on your rental property in additional to landlord liability is tax deductible.

6) Taxes:  Local, State property taxes that you owe on your rental property taxes are deductible.

7) Professional Services :  If you are hiring an accountant or a property management company, you will be able to deduct these expense from our taxes.

8) Advertising:  Any newspaper or internet advertising that you pay to market your rental property is tax deductible. 

9) Office Supplies:  If you pay for rental agreement forms and supplies that you utilize in the service of your rental property is tax deductible.

10)  Utilities:  If you pay any utilities on your rental property, they are tax deductible.

Once again the information provided here is not meant to be legal advice and you need to contact your CPA to implement these changes.