As a landlord, you have opportunity for tax deductions that often go overlooked. Like saving money on utilities or other expenses on your rental units, you would also want to make sure that you were taking advantage of any deductions that are available. The following 10 tax deductions for landlords can assist you in maximizing your savings when it comes time to file your taxes.
Interest - Possibly the largest deduction for any landlord are the interest charges on their rental units. This may not only include the interest that is paid on the mortgage itself but it can also include interest charges for credit card expenses that are used for the rental property as well. It is important for you to check into the details of being able to deduct the interest from your taxes, because it can make a substantial difference in the bottom line.
Repairs - Any repairs that take place to the property, provided they are necessary and ordinary in nature, are able to be deducted from your taxes.
Travel (Local) - Any local travel that is done for your rental unit can be deducted from your taxes. This would include deducting gasoline expenses at the standard mileage rate.
Travel (Long-Distance) - When your rental units require you to travel overnight, it is possible for you to deduct the activity on your income taxes. This could include a variety of expenses, from meals to hotel bills and even airfare, if it was required.
Depreciation - when you pay for a rental unit, you may not be able to deduct the full amount in that year. This amount can be claimed on future years of taxes as an expense that is known as real estate through depreciation.
Contractors - Regardless of whether you use contractors or employees for your rental properties, it is possible to deduct their wages as a business expense.
Home Office - You may be able to deduct home office expenses from your taxable income, provided you meet certain requirements. This can be associated with any space in your home that is dedicated to office work and you can also claim the deduction if you rent.
Loss - Any type of loss to your property from property damage or theft may be considered a tax deduction. Known as casualty losses, you can record them on your taxes in order to save money.
Professional Services - Any fees which are paid to professional services, such as property management companies, attorneys and accountants can be deducted from your taxes.
Insurance - when you pay for insurance on your rental property, it is possible to deduct the premiums. Some of the different types of insurance which are able to be deducted include theft, fire and flood. If you pay landlord liability insurance and have employees, it is also possible for you to deduct more insurance coverage.