| The definition of rental revenue is that of any revenue | | | | units, be it traveling to the rental property or traveling to |
| which is generated from your rental property. Rent | | | | buy goods for the maintenance of the rental property, |
| you receive is also included in that category. Another | | | | such travel expenses can be deducted from the rental |
| aspect that is included in the category is an advance | | | | property tax. |
| on rent, expenses on your property which is paid by | | | | Home Office: |
| the tenant, and security deposit that is not returned to | | | | If you could meet the minimal requirements, you may |
| the tenant. This also includes the sum paid to call off a | | | | deduct the home office operating cost from the |
| lease, if any. | | | | taxable income. |
| Many owners with properties for rent, fail to take | | | | Deduction on salary and contracts: |
| benefit of the various deductions available and shell out | | | | When you appoint anyone to carry out services for |
| more taxes on their rental income. It is a fact that | | | | your rental property, you can deduct their pay as |
| these properties have more tax benefits than any | | | | rental business expense. |
| other source of investment. | | | | Deduction on Losses: |
| Interest: | | | | When the said property is damaged or destroyed due |
| The single major deductible expense of this type of | | | | to natural disasters, you can claim a tax deduction on |
| property- owner is interest incurred on mortgage | | | | all or a part of your loss. This is known as 'Casualty |
| payments, advances which are used to buy rental | | | | losses'. How much you can actually deduct is |
| assets or repair any of them. Interest on credit card | | | | calculated on the basis of the damage incurred. |
| used for rental property is also a part of it. | | | | Deduction on Insurance premium: |
| Depreciation: | | | | You can deduct the premiums paid for almost any |
| The rental area-owner can get back the cost of his | | | | insurance coverage on your rental property. Some |
| property in the coming years, after the year which | | | | deductions on insurance, which are available are |
| wherein he bought the property by depreciation. This | | | | insurance on natural calamities, owners liability |
| can be achieved by deducting the price of the rental | | | | insurance etc. You can also claim a deduction on |
| property, over a number of years. | | | | premiums of employee's health and compensation |
| Maintenance: | | | | insurance. |
| The maintenance works that are done on your | | | | Deduction on amount paid for professional services: |
| property, which are regular, sensible and indispensable | | | | You can deduct your taxable income by showing the |
| can be fully subtracted in the year which the repair | | | | amount you have spend on attorneys, accountants |
| happened. Replacing broken windows, fixing toiletries | | | | real estate management companies etc. On this note, |
| and floors, etc.; are some of the examples of | | | | you may show them as 'operating costs' incurred on |
| deductible repairs. | | | | your rental property. Make sure that you have the |
| Travel: | | | | documents acknowledging the fees paid for by such |
| When landlords travel for the benefit of their rental | | | | activities. |