Rental Property Tax Deductions
Rental property can be a great investment, however, if your knowledge of the process is insufficient it may become detrimental in the long-term as opposed to beneficial. Additionally, rental property owners are responsible for paying property taxes to the government as well as claiming the income you receive from rent expenses. It is important to understand the positive and negative effects of being a rental property owner and using these tips and tricks to become a productive and successful property owner. Favorable deductions (tips) available to you:
- Vehicle expenses
- Travel expenses provided you own more than one rental property
- Capital expenses
- Repair and maintenance
- Insurance premiums
Unfavorable sources (tricks) that the government can use against you:
- If you rent out a portion of your home, be careful about the portion of expenses you claim as it could jeopardize the principal residence exemption on the property.
- Many people claim depreciation on their rental properties. This can be dangerous as it could lead to a potentially large tax bill upon the sale of the property.
Let Numbers Plus® provide you with the knowledge needed to be a successful rental property owner. Let our team of experts
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