What Tax Deductions Can I Take As A Landlord?

If you are a landlord of even a single rental unit, you might get stressed when tax time comes each year. This is because it can be extremely difficult to figure out tax on rental income. If you are trying to do your own rental income tax this year, you are probably interested in learning as much as you can about deductions. This article is meant to act as a starting point for your research, though you should also pull a multitude of other articles about tax on rental income!

The subsequent paragraphs are rife with facts about deductions that you are legally allowed to take when you get ready to file your tax on rented property documentation. Keep in mind that taking particular deductions might not be appropriate in your situation. However, this guide should help you get started with learning more about tax on rented property.

Can Repair Expenses Be Used as Deductions?

Since you are a landlord, you probably pay for particular repair jobs at your rental units annually. You can deduct these maintenance costs when you complete your rental income tax documents. If, for instance, you are the owner of six rental houses, all of which got new roofs over the summer months, you could take a rather large deduction. You can also take smaller deductions, like the cost of paying a plumber to repair a toilet in one of your units.

What If My Rental Homes Aren't Located Close to My Residence?

There are particular circumstances in which landlords dwell far from the rental houses they possess. For example, it is completely possible for an individual to retire to a tropical land, yet continue to rent houses in his or her hometown hundreds, or even thousands, of miles in another direction. If these landlords want to see the states of the rental units they own, they have to travel quite far. If your home is nowhere near the rental houses you own, you are likely to be able to take some travel deductions when you fill out your landlords tax papers every year.

There are a list of specific travel costs that one can take as deductions. Plane tickets and gas that you put in your own vehicle, for instance, qualify. Consult a rental income tax expert if you have any questions.

What If Other People Help Me Manage My Properties?

Many landlords pay accountants, lawyers, and professional property managers to help them keep watch over the units they own. You might be able to deduct the sums of money you pay these individuals when you fill-out your annual tax paperwork.