If You Own Rental Properties, You Should Take Full Advantage of the Tax Deductions

Most people are unaware that rental real estate getsdeductible include, but are not limited to, fixing leaks,
more tax deduction benefits than almost any otherfloors and/or gutters, painting, plastering and broken
investment. If you do not take full advantage of taxwindow replacement.
deduction benefits, it can actually mean the difference· Depreciation-you cannot fully deduct the cost
between having a loss or a profit from your rentalof a house, building or rental property during the year in
investment property. Tax deductions are meaninglesswhich you pay for it. However, you will get back the
if you do not take advantage of them like you should.cost of the real estate through depreciation. You will
What are some of the top tax deductions? In nobe able to deduct parts of the cost during several
particular order of importance, some tax deductionsyears. You should definitely look into segmented
you can use are:depreciation so that you can increase the depreciation
· Professional and Legal Services-you candeductions you will receive during the first few years
actually deduct what you pay your attorneys, propertyyou own your rental properties.
managers, accountants, investment advisers and anyThese are just some of the deductions that you can
other professional you use.make on a rental investment. If you only rent part of
· Home Office-there are minimal requirementsyour real estate investment, you must divide certain
that you must meet, but you can deduct expenses forexpense between the part that you use for personally
your home office from your taxable income. Not onlyand the part you are renting out. For example, if you
that, the deduction applies to the space allotted tohave a two-family property and you occupy one half
office work, a workshop and any other space in yourof the property, you may only deduct half of the
home that you use for your rental properties business.expenses for the property.
· Local Travel-as a landlord, you are allowed aYou should be as smart as you can about your rental
tax deduction anytime you drive anyplace as part ofinvestment so that you can maximize your tax
your rental business. If drive to one of your apartmentsdeductions. Therefore, you should be aware of the
to speak to a tenant about a complaint, for example,other deductions that you can use, which are actually
or if you go to a store to buy something for repairs,too many to list in short article. However, you should
you are entitled to deduct the travel expensesdefinitely talk to your accountant and find out what
involved.deductions are available to you as a landlord. If you like
· Repairs-rental properties need repairs. This isto do your own taxes, then you should find some
a fact and repair costs are deductible in the year inreally good software which will help you with all of the
which they were done, provided the costs aredeductions that you can make.
reasonable, ordinary and necessary. Repairs which are