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Tax Deductions for Landlords (Part 2)

More landlord tax deductions

As a landlord, you know first hand how fast the “little things” really add up.

Filling up the gas tank after traveling to pick up rent checks, fixing a broken window, and replacing a lock  are just a few examples of expenses that total up over time.

The good news it that each of the expenses just mentioned is in fact tax deductible. Yes, even your vehicle mileage.

In part 1 of this article, we explained that the services you paid for could be included as deductible rental expenses. There are other landlord tax deductions you’ll want to include on your tax return.

What other rental expenses can I include as a deduction?

If you earned rental income, as we mentioned, you can deduct the expenses that you paid in relation to:

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Tax Deductions for Landlords (Part 1)

There are quite a few, often-overlooked expenses that landlords can report as a tax deduction.

If you own rental real estate, you must report the income you earned from this property on your federal tax return. You will also be required to pay tax on your rental income if you made a profit.

First, keep in mind that aside from the monthly payments you receive from your tenants, taxable rental income also includes:

  • advance rent payments
  • security deposits used as a final payment of rent
  • payments for canceling of a lease
  • property or services received in place of money, as rent

So, what’s considered a “rental expense”?

On the plus side, rental properties offer more tax benefits than most investments. In fact, you can deduct a majority of the rental expenses you had during the year. According to the IRS, you can report expenses related to the following:

  1. upkeep & maintenance of the property
  2. conservation & management of the property

Landlord tax deductions also include contract work!

Remember when you forked over thousands to a plumber after your tenant called complaining that the toilet wasn’t flushing?  How about that week the roof collapsed from snowfall and you were forced to track down a roofer?

These (often unexpected) headaches come along with life as a landlord. Fortunately, they are related to the upkeep and maintenance of the property and thus, tax deductible expenses. Continue reading “Tax Deductions for Landlords (Part 1)”

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California Income Tax Rates

California residents pay the highest income tax rates in the country…

California is a paradise to its 38 million residents. Wines in Napa, celebs in L.A., Disneyland in Anaheim, the zoo in San Diego, well, there’s a lot to see and do.

However, living in the golden state comes with a hefty price tag. California levies the highest tax rates in the country. If you’re a new CA resident, you’re bound to notice it most when you file your state return.

Just how pricey is it?

Here are the 2014 California income tax rates for single filers:

California 2014 Tax Rates.jpg

If you’re Married Filing Jointly or Head of Household, just double the income brackets listed above. Continue reading “California Income Tax Rates”