| Tax deduction benefits provided under rental property | | | | you need to discuss something with the tenant or for |
| can be a boon to landlords. There are a host of | | | | repairs. In such cases travel expenses incurred can be |
| benefits that this scheme provides. These benefits can | | | | claimed under the tax deduction scheme of rental |
| be obtained via a number of heads like payment | | | | property. As far as repairs go, you can also claim for |
| needed for cancelling a lease, rent amount, expenses | | | | expenses incurred while traveling to electrical or fault |
| incurred by the renter etc. | | | | fixing organizations or plumbing companies etc. for visit |
| Here is a list of some of the most common deductible | | | | detials:- you need to fly to another city you can even |
| expenses: | | | | claim your airfare expenses and even hotel stay |
| 1. Interest: Payments towards the mortgage interest, | | | | expenses to avail tax deduction. If you are smart |
| payments towards the loans for improving or acquiring | | | | enough you might just want to use this facility to |
| rental property as well as interest accumulated on | | | | combine a business trip with some leisure activities! |
| credit card payments all constitute deductible interest. | | | | 5. Home office: If you have set aside a portion of your |
| for more detials:- often the credit cards are procured in | | | | house for rental business activities, you can claim |
| order to buy services or goods towards the rental. For | | | | these expenses towards the home office from your |
| most home owners who have rented their property it | | | | taxable incomes. |
| is this interest which constitutes the largest portion of | | | | 6. Losses: You may have suffered major losses due |
| deductible expense. | | | | to floods or fire breakouts. In such cases you can |
| 2. Depreciation: Very often you may lose out on the | | | | claim a tax deduction either on the basis of the total |
| property value because of depreciation. However now | | | | loss or part of the loss. The amount of deduction |
| you can reclaim the rental property costs via | | | | provided will also depend on insurance amount being |
| depreciation. Such benefits can be provided from the | | | | claimed by you. |
| second year onwards. As a landlord you can claim all | | | | 7. Insurance: If you are paying a premium towards the |
| depreciation costs over as many as 27 and a half | | | | insurance on your rented property you can deduct the |
| years! | | | | amount under this benefit too. Things like theft, fire, |
| 3. Repairing: Things like floor tiling, fixing leaks in the | | | | flood insurance as well as insurance for landlord liability |
| house, repainting jobs, the replacement of windows | | | | are covered under the scheme. |
| which have been broken, plastering as well as other | | | | 8. Services: These include diverse fees that get paid to |
| expenses constitute the largest portion of repairs. You | | | | companies for property management, attorneys, |
| can avail benefits of deductible expenses in the same | | | | investment advisors of real estate, accountants, as |
| year in which you would have incurred these | | | | well as other professionals as long as their services |
| expenses. Thus, other than capital improvement | | | | are towards rental activity purposes. |
| expenses you can avail deductible benefits with | | | | There are certain non deductible expenses too such |
| reasonable, necessary and ordinary forms of | | | | as modification expenses like addition of new rooms in |
| expenses. | | | | the house, vacancy resulting in loss of income, |
| 4. Travel expenses: There maybe times when you | | | | obtaining new tools or appliances, building new roofs or |
| need to travel to your rented property either because | | | | providing fencing in the house etc. |