Reduce Your Landlord Taxes

Rental property tax deductions are critical to landlords. These deductions could literally slash your tax liability. If you own such property, you need to familiarize yourself with these deductions.

•Depreciation Value of Your Property

When you purchase a property for rental you cannot deduct the full amount of what you paid for it from your income taxes. Instead, the property depreciates over time. Generally speaking, the elapsed time for depreciation is 20 to 30 years. Homeowners cannot claim depreciation, so you won't be able to apply this deduction to the place where you live.

•Insurance Premium Costs

All insurances related to your ownership of your property are tax deductions. This includes, but is not limited to things like landlord liability insurance, building insurance, and home contents insurance.
If you employ people to maintain your properties you can even deduct their workman's compensation insurance as a deduction related to your property ownership.

•Mortgage Payment Deductions

Just like a homeowner, as a rental property owner you can deduct the interest on the loan you took to purchase the property.

•Repair Deductions

Whatever it costs you in repairs and maintenance to keep your property in good condition is tax deductible.

•Traveling Expenses

Any travel expenses you incur as part of being a rental property owner are tax deductible. Whether you drive to your properties to collect monthly payments or to regularly cut the grass, paint the building, fix broken water pipes or show apartments available for rent, all of it is tax deductible as expenses incurred with being a rental property owner.

As part of these expenses, you are generally allowed to deduct vehicle maintenance and repair, and gasoline bills.

If you own property abroad and must travel to a foreign country to engage in business activities associated with rental property, you may be able to deduct your accommodations and driving expenses, along with airfare.
If you own such properties, it would be wise to have a professional prepare your taxes for you. There are many business deductions and tax credits that may apply beyond rental property deductions. Find a professional to prepare your return who has a niche operation for rental property owners. Only in this manner are you assured not to miss out on any of the tax deductions and credits available to you as a property businessperson.

Also, your professional tax person can advise you about what deductions and tax credits you are eligible to claim and those you are not, due to circumstances with which you may not be familiar.

Are you a landlord managing rental property? You may miss out on some special deductions which are available due to your status. What are they? Chintamani Abhyankar explains many of them to slash your taxes.
Chintamani Abhyankar, is a well known expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of personal finance. His famous eBook Stop donating your money to IRS which is now running in its second edition, provides intricate knowledge and valuable tips on personal finance and income tax.