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:
- upkeeping & maintaining a rental property
- conserving & managing a rental property
What constitutes upkeep and maintenance, and is also tax deductible? You can include the following expenses on your tax return as long as they are related to your rental property:
- utilities
- repairs
- real estate taxes
- legal fees
- depreciation of rental property
- insurance premiums
- management fees
- costs of cleaning
- travel costs (if you used your personal vehicle for rental activities)
- your home office
Again, remember to save ALL of your receipts.
Is there anything I can’t include as a rental expense?
Yes, there are certain expenses that you won’t be able to include as a deductible rental expense on your taxes.
For example, you may not deduct the cost of improvements. Improvements, such as adding a deck or fence to the property, increase it’s value and are calculated separately (by their depreciation value). We’ll tell you where in a forthcoming post.
You should also keep well in mind that expenses that are not directly related to your rental property can not be included. For example, the tickets you snapped to see Rent on Broadway can’t be included as rental expenses, even if you invite your tenant along. | Photo via Tim Lucas on Flickr
