Part of being a landlord means receiving several benefits from owning rental property, specifically during the tax season. As nearly every expense can lead to a deduction, expenses, mortgage interest and more, it is important to be aware of the various tax write offs available to landlords.
Let us look at the top 4 tax write offs you could benefit from as a landlord.
#1 Interests – Yes, All Kinds
While some tax write offs may seem obvious, interest is one tax write off landlords tend to miss. Any interest incurred on credit cards, loans, or other lines of credit used to inquire, improve, or perform any activities related to the rental property can be written off come tax season.
#2 Employees and Contractors
Anytime you hire someone to perform or improve your property, you can deduct their wages or fees as a business expense. The best part is, this is true for both landlords and home business associations. Simply be sure to keep all receipts for your records.
#3 Professional and Legal Services
Services performed by professionals like attorneys, accountants, management companies, and even investment advisors are considered operational expenses. These are easily deducted as they are vital to the operation of your business.
#4 Marketing Expenses
One tax write off that is frequently forgotten are the marketing expenses incurred throughout the year. A new website, postage for mailers, ads in local magazines are all part of businesses expenses that can be deducted at the end of the year.
Before you finish filing your taxes, go through your entire business to make sure there is nothing forgotten. Landlords, property managers, and homeowners’ associations can benefit from multiple tax deductions, so be sure you are aware of how to continue benefiting your property business.
Thinking of becoming a landlord, contact one of MGR’s real estate agents to help you find the right investment property. Or, if you are already a landlord let MGR help you. Through our Property Management services, we can take all the heavy work off your hands. Our experienced property managers can correctly track all expenses incurred throughout the year and better, yet you can also write off our services!