Ok so I know tax deductions are not that exciting to talk about but I know we all would prefer to have more cash in our checking accounts at the end of the year.
The great news is there are lots of ways real estate investment properties can provide tax deductions. The bad news is the rules change every year so when this book arrived on my desk last week I was actually very excited. Every Landlord’s Tax Deduction Guide by Nolo Press. This 9th edition just came out this year and is over 500 pages!
Did you know there are NEW IRS Rules for Repairs vs Improvements? The good news is they have delayed the new regulations till next year (2014) so right now you have the option of applying or not to the new temporary regulations. Repairs can be deducted in the year they are done. Improvements have to be depreciated over several years (27.5 years). Watch out and don’t mistake an improvement for a repair you could find the IRS audit man on your doorstep.
To learn more about this important change and other rules, regulations and laws that can make and loose you money check out this book it is a terrific resource and should be on your real estate resource shelf 🙂