As tax season comes to a close one question that many Americans will ask themselves is did I pay too much in taxes? According to TurboTax, if you’re a landlord then it is likely that you did pay more in taxes than you needed to because you overlooked deductions and tax benefits that rental properties often offer.
According to Nolo.com the lost revenue from over paying taxes is often the difference between making a profit or losing money on a rental unit. Nolo.com lists several tax deductions that owners of small rental properties should look for including:
Landlords can deduct interest on mortgage payments or interest on credit cards that is related to acquiring and or improving their rental property or buying goods or services related to their rental property.
Property owners can deduct repair costs like repainting, or fixing leaks in their rental property.
When landlords drive anywhere connected with rental activity they can deduct the cost of the local travel including deducting the actual expenses of the travel (gas, repairs, etc) or use the IRS’s standard mileage rate
Property owners can deduct salaries of any employees or independent contractors who perform work related to your rental property.
For a full list of potential tax deductions you may be missing out on click here
Even if you’re aware of potential tax deductions related to your rental property, keeping track of all of them may seem like an impossible task. RISSOFT building management software offers a property management system that is better than what other property management software companies have to offer. RISSOFT management property software has accounting features that gives you a complete ledger and the capacity to generate financial reports that can save you time and money during the tax season. For more information or to get a free demo please contact us today
This post is provided by RISSOFT Residential and Commercial Property Management Software, specializing in innovative and cutting-edge property management software for all 50 states. Request a demo or contact us today to receive more information.
Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.
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