Why Rental Properties Are a Great Investment

Why Rental Properties Are a Great Investment

July 12, 2018 admin

Rental-property owners take note: With tax season just around the corner, we compiled a list the best reasons rental properties are such great investments:

 

Residential rental property is the only investment asset that both appreciates and depreciates at the same time. When the value goes up on your property, the increase in value is money you can keep. Depreciation offers you a level of compensation for that wear and tear in the form of substantial write-offs.

 

Deductions that are less obvious include expenses to obtain a mortgage and fees charged by an accountant to prepare are Schedule E. A rental home can even be a houseboat or trailer, as long as there are sleeping, cooking, and bathroom facilities. The location of the rental home doesn’t matter—It can be in the United States or overseas.

 

For any business or property owner, the importance of keeping good records on a consistent basis is of the upmost importance.

 

The following is a list of some of the best write-offs regarding rental properties (each may have certain restrictions):

Homeowner’s association (HOA) or condo fees

Utilities

Insurance

Property taxes

Management fees (e.g. Property Management)

Pest control

Landscaping

Mortgage interest

Other interest

Bank fees

Supplies

Education/professional development

Licenses/permits

Leasing fees

Legal & professional fees

Office/telephone

Postage/shipping

Travel

Meals & entertainment

Automobile/car expenses

Repairs*

Appliances/fixtures/equipment*

Minor improvements*

Major improvements/new assets*

Depreciation

 

For More Information:

https://www.entrepreneur.com/article/219474

https://www.biggerpockets.com/renewsblog/rental-tax-write-offs/

https://www.houselogic.com/finances-taxes/taxes/tax-deductions-rental-homes/

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