If you own rental property that you should be aware of your tax deduction options. Knowing how to save money can help you to pay your mortgage and keep your income higher from your rental units. You can get different benefits and should know about the normal deductions that you can make from your properties.
Here’s a list of some that you should know about.
1. You can deduct interest that you paid for your credit card if you were using it to buy items or services that improved your rental unit. You can also deduct interest that you’ve paid on a mortgage loan. This is the most common form of deduction that you can make.
2. You can claim depreciation on your tax return every year for up to 27 years. This can help you to make any money that you would lose otherwise.
3. If you want to repair things are your property than try to do so and remember to make the deductions the year that you did the projects. This includes a wide array of things such as laying down tiles, repairing broken pipes, putting plaster on walls with holes, replacing broken glass windows or frames, and any other home improvement type project that you can think of to make in your rental property.
4. If you need to travel as part of your job or live far away from your rental property than you can include this in your tax deduction claims. You may need to travel to and from your property to take care of rental business with your tenant, to supervise repairs, to advertises your rental units, or a host of other reasons that are valid enough to claim a tax deduction during the year that the travel incurred. If you work your way around it you can use this clause to have some pleasure during your travels as well.
5. If you work from your home on your rental properties than make sure you claim this as a tax deduction. Your home office is a great way to save some extra cash while you get your business done.
6. If you’ve had a significant loss from a fire or a flood than you can claim this on your tax deductions. This can cover a partial loss or a complete loss of property. You will have to compare your insurance to your deductions to figure it out.
7. If you are paying a lot to insure your rental property than have no fear, because you can claim this insurance on your tax deductions. This means that any insurance such as theft, flood, or fire insurance can all be claimed and help you save money on your taxes.
8. If you have to pay fees for various services such as a lawyer, an accountant, or a rental agent then you can also be sure that these can be deducted.