The key to saving money on your tax return is to take advantage of the many deductions offered to full-time rental property owners. Your property is considered a full-time rental if you allocate fewer than 15 days for personal use.
Some of the most basic deductions that landlords could easily overlook are costs related to cleaning and maintenance, property taxes, management fees, mortgage interest, advertising, and even property insurance.
Want to save even more money? You can also deduct expenses related to traveling to manage your property, depreciation of your property, HOA fees, insurance claim deductibles, operating expenses, and even your utilities. Basically, any cost you incur to keep your rental property up and running can be filed as a tax deductible expense.
If your rental property expenses exceeded your rental earnings, you can even deduct your losses. If your annual income (adjusted gross income) is below $100,000, you are eligible to deduct up to $25,000 of your rental losses. As your annual income increases, the rental loss deduction is reduced.
One of the best tips any landlord could get is to keep meticulous records or better yet, hire a professional property manager to keep these records for you. You must treat your rental property like a business. The more expenses that you document, the better chance you have to get those tax deductions and keep more of your money. Rental Management One provides detailed expenses reports and even copies of expense receipts for our Owners to turn into their CPA making this important task a “non-stress” related task.
New to the Rental Game
With the popularity of travel websites such as Airbnb, many people are interested in the opportunity to turn their primary and/or secondary home into a money making property, which is a great idea I might add. The good news is, for rental experts and noobs alike, you can dramatically benefit by adding a professional property manager to your business team. The cost is low but the value is worth every penny. Call Rental Management One at 248-208-3882 and start getting the most money out of your rental property.