Wondering what expenses you can and can’t deduct come tax time?
Many property owners wonder what expenses can legally be deducted from their income. This article will give you some general guidelines, however, you should always consult your accountant and financial advisor for specific advice.
Maintenance Fees: Consider deducting any expense you incurred for cleaning, lawn maintenance, painting, carpet cleaning, pest control, and any other general maintenance fees. Also, you may be able to deduct mileage to and from your property, so it’s worth keeping track!
Marketing Fees: You can deduct any expense incurred by marketing your property, from hiring a professional writer and photographer, to paying to list it on a rental website, hosting fees for a website, postage, copies of a brochure, online newsletter, etc.
HOA Fees: Homeowner’s association fees are tax deductible too and HOA special assessment fees are generally as well.
Insurance, Taxes, and other Finances: You can deduct your property insurance, liability insurance, property taxes, closing fees (if you refinanced your home in the year prior), legal fees, tax preparation fees, etc.
Educational Expenses: If you’ve attended a seminar or purchased a book on managing your furnished rental, you may be able to deduct those expenses as well.
Remember to consult your CPA, tax attorney and financial advisor for guidance as these guidelines may differ depending on your personal situation.
Learn more ideas in the book: Making money with Rental Properties.