As the beginning of a new year quickly approaches, one of the first things on your to-do list will likely be filing your taxes. For rental property owners, there are typically a long list of items you can deduct.
But even if you’re a seasoned professional investor, could you be overlooking some valuable deductions?
Although most single- and multi-family real estate investors are familiar with most of the allowable tax deductions, such as mortgage interest and property repairs, there are others that are not so obvious – but that could be extremely valuable to you.
Some of these include:
- Advertising / Marketing Expenses – Although you may use some of the tried and true free sources like Craigslist to advertise your properties’ vacancies, any of the costs that you do end up incurring for marketing should be deductible. This can include listing fees that are charged by an agent, as well as postage for any mailers that you send out.
- Vehicle / Transportation Costs – Travel is a necessary component of managing real estate – and, depending on just exactly where your rentals are located, it could be that you put a considerable amount of mileage on your vehicle, as well as spend a fair amount of money each year on fuel. In this case, you will be able to choose between either a standard or an itemized deduction for your vehicle expenses. If you do go the route of itemizing, it will be necessary for you to keep careful records.
- Property Management Fees – If you have hired a professional property management company to take care of collecting rent, and / or performing maintenance, you can deduct any of the fees that you pay for these services. For many rental property owners, working with a property manager can help to free up time and delegate the day to day operations.
For more information on the many benefits of working with a property manager in Orlando and the Central Florida area, contact us.