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):
Why Rental Properties Are a Great Investment
Why Rental Properties Are a Great Investment
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/