Tax Deductions Every Property Investor Should Know About

Did you know that rental properties provide more tax benefits than most other investments? Were you aware that by owning rentals you are entitled to deduct on your taxes a full array of necessary business related expenses towards conserving, managing and upkeep that are associated with your rental investment properties?

The many available tax deductions on rentals can have a significant impact.

Almost everything you buy for your rental business is tax deductible, so long as it is ordinary and necessary and the cost is not unreasonable. These deductions can really add up and increase your bottom line. No one wants to pay more than necessary to fix up their rental units or pay more than they have to for utilities or other operating expenses for a rental property, so why pay more taxes on your rental income than necessary? Yet, surprisingly many tax benefits are overlooked by the investor.

Investors can deduct mortgage interest payments on loans used to acquire or improve rental property, interest on credit cards for goods or services used in a rental activity, homeowner’s association dues, special assessments, wages and salaries for employees, such as on sight residential managers and maintenance workers and even for legal and professional services such as attorneys, accountants, property management companies and other professionals.

Other tax-deductible services that can be used as deductions are independent contractors, needed for the repairs or maintenance of the property, such as a handyman, electrician, plumbers; pest control, lawn and garden upkeep, preventative work; roofers, painter etc….

Additionally if you rent equipment and tools or buy material and supplies, these too are fully deductible as a business expense.

If your rental property is damaged or destroyed like from a fire or flood, you should be able to obtain a tax deduction for your casualty losses.  And speaking of casualty, you can also deduct the premiums you pay for most insurance for your rental property.

Bottom line – speak with an experienced accountant and let him/her guide you on how to maximize the tax deductions on rentals and your property. You may have a tax deduction gold mine.

About Octazon:  Whether you own a few properties or hundreds of properties in Florida, Octazon Management, LLC is here to simplify property ownership and management. We can help you manage any and all of your properties.  At Octazon we provide simplicity & peace of mind.  Octazon uses cutting edge, cloud based property management software that fully integrates the entire property management and financial process enabling the investor direct access to valuable owner/investor information and reports 24/7 that helps you and your accountant identify all your valuable tax deductions.  

When providing management services to Realtors, Octazon will NOT provide the leasing, rentals or sales – so you never have to worry about losing control of your relationship with the owner. 

Providing Simplicity and Peace of Mind™ 

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Posted by: marvinkatz on January 28, 2015