Well, we are now two weeks into 2014 and it seems to already be moving fast. Before we know it, the weather will be warmer (it has been quite warm so far this year, yeah!) and the grass will be turning back to green. For many of us, that means we will start thinking about that word that may scare some of us – TAXES.
At Real Property Management of the Rockies, we hear from many of our owners that are starting to think about preparing their tax returns. So, we wanted to put together the top ten deductions for landlords.
- Interest – Interest is one of the big deductibles that owners can take advantage of. The interest that owners pay on a mortgage is deductible.
- Depreciation – As your property ages, owners can get back the cost of their real estate through depreciation, which takes place over several years.
- Repairs – Any repairs you make on your investment properties during the calendar year are deductible.
- Local Travel – If you travel to and from your property for any reason or you go to your CPA for tax preparation, they are deductible.
- Long Distance Travel – And, if you have to travel overnight to visit your property, everything from airfare to hotels to cars is deductible.
- Home Office – If you have a home office or a home workshop that is used for your property investment purposes, you may be able to deduct expenses related to these.
- Contractors – If you have any employees or contractors that work on your properties, their wages can be deducted.
- Losses – If you experienced any losses to your home (water damage, flooding, etc), these casualty losses may be deductible.
- Insurance – Check with your CPA about what premiums are deductible. Premiums related to your rental are typically deductible.
- Legal/Professional Services – Attorney, accountants, property management companies, and other professional fees are all deductible. (Another reason that having Real Property Management of the Rockies as your property management company is a good idea. Our property management services are TAX DEDUCTIBLE!)
We hope this list above is helpful for your tax purposes. Obviously, this list is not exhaustive and a seasoned tax professional may have more insight. If you or anyone you know are in need of property management services, Real Property Management of the Rockies would be honored to become your trusted property management partner.