As a landlord, there are a number of things that you will be paying for. While it may feel like you are paying a lot more in taxes and expenses that you should, there are also a number of breaks that you can make use of.
Here are a few deductible expenses for rental property that you should definitely look into
One of the biggest deductible expenses for rental property, interest is calculated based on many payments. The interest paid for loans that can either be used to buy the property or even improve can be written off. Interest paid on credit card payments can also be added to this list, so long as it was used in the maintenance and upkeep of the rental property.
While you cannot deduct depreciation for your property on the first year of purchase, you can do it in the following years. The cost of the property can be subtracted by a small amount in the cost of property.
The law says ‘necessary, ordinary, and reasonable’, that means you can deduct repairs as part of your property’s upkeep, but there are a few restrictions. Fixing floors, plumbing, wiring, and such repairs that involve living conditions can be fully deducted.
If you have to travel to meet up with your tenants of attend to your property in any way, then you can deduct those traveling expenses. Fuel expenses and toll can be deducted, but check with the IRS website on details. Hotel bills and airfare can also be included if you are traveling long distance.
The list is not complete and there are a lot more deductible expenses for rental property, so check with your accountant or the IRS website for the complete list.