With the end of the year in sight you may have a few questions regarding tax deductions on your property. Because your property is an investment, there are certain deductions you can take, but do you know which ones?
- Home repairs
- Loan interest paid
- Professional fees
- New refrigerator
Answer: All of the above!
The reality is that there are many items you can check off as a tax deduction. Every year, millions of landlords pay more taxes on their rental income than they have to. Why? Because they fail to take advantage of all the tax deductions available for owners of rental property. Rental real estate provides more tax benefits than almost any other investment. Examples of some of the available tax deductions are: Interest paid on the home’s mortgage, legal and professional fees such as your property management expense, property taxes, casualty losses, some major appliances, expenses paid to make your home more accessible to individuals with disabilities or the elderly, and in many cases home repairs and improvements.
Of course with any tax deduction, often times there are exceptions so make sure to discuss your rental property with a fully qualified tax professional.
Blog content provided by Cris Bell, Property Manager, Real Property Management Hampton Roads