As the end of 2017 quickly approaches, investors of all types will soon be turning to their annual tax return. For those who own rental real estate, tax time can provide you with a long list tax deductions – in turn, providing additional avenues for financial gain.
So, what can be deducted by investment property owners?
There are actually a number of items that qualify – provided that they are specific to purchasing, running and / or managing the investment(s). These can include the following:
- Mortgage Interest (as well as points paid to obtain the property’s mortgage)
- Depreciation (this includes depreciation on the value of the structure, as well as on the value of improvements, such as carpet and windows, as well as other items like the appliances)
- Real estate taxes (if applicable)
- Maintenance / repairs (which includes the cost of both equipment and labor, as well as items that keep the property safe and inhabitable, such as annual pest control treatment, and even the cleaning of a back yard swimming pool)
- Insurance premiums
- Property management fees
Prior to claiming any property investment-related expense on your tax return, it is important to be sure that you’ve got the records to back them up. That’s because the IRS may want proof – so you need to be ready just in case they should ask.
If managing your investment property(ies) and / or tenants has become too time-consuming, working with a property manager could be a way to alleviate a plethora of duties from your schedule and free up your days from collecting rent checks and patching leaky roofs.
For more details on how you can go about delegating these tasks, while at the same time profiting from your real estate investments in the Orlando and / or the Central Florida region, contact us today.