Tax is a tiresome and complicated subject and unless you have a creative accountant you’re probably paying much more in tax than you need to.  If you don’t know all the legitimate deductions the IRS permits then you can’t claim them, and therefore are paying out when you don’t need to.  If you’re trying to make a living with Port Royal Homes for rent take note of the following tips and use them to your advantage.
Here are the top ten tax deductions for landlords.

Interest.  Often our biggest single expense.  Interest can cover mortgage or home loan interest or interest on a loan or credit card used to buy goods or services used to maintain the properties.
Depreciation.  Not all property gains value.  The last couple of years has shown us that in painful detail.  Landlords can claim back property depreciation over the space of several years.  The rules and methods of working it out can be complex so it’s worth consulting an accountant.

Local Travel.  Landlords are entitled to a tax deduction on any travel associated with the maintenance or running of your property.  That can be anything from visiting the property for an inspection or a trip to the hardware store for repair materials.  If you drive a commercial vehicle you can either deduct the actual expenses for running costs like fuel, tires and upkeep or use a mileage rate to claim the cost back.  Again, it’s worth consulting an accountant to decide which is the most beneficial to your circumstances.

Long Distance Travel.  If you live far away from your property you are entitled to claim back all expenses incurred during a visit as long as the visit is necessary.  You can claim air fare, hotels, meals, cab fares and other deductions.  Be  prepared to have to back this up though.  Get receipts for everything as the IRS scrutinize these kinds of claims very carefully.  That’s not to say you couldn’t include a bit of leisure in the trip, just be careful which parts you claim for.

Repairs.  Probably the second biggest expense, especially if you have Naples luxury houses or Port Royal homes for rent.  The upkeep and repairs on these kinds of properties can be expensive to say the least.  You have to be a bit careful with repairs though.  You can claim for repairs that keep the property in habitable condition, but not ones that improve it or add value.

So there are the first five tax deductions a landlord can make in the course of their business.  If you don’t claim for any of them, get your accountant on the case right away otherwise you’re paying out more than you need to.
In the next article we’ll cover home office, theft, insurance, professional services and employee and contractors.  All five are a major part of our daily lives as landlords and all have tax deductions associated with them.