As someone who owns property, you likely want to know exactly which expenses you can legally deduct from your income around tax time. With the new filing deadline of May 17, getting things in order is more important than ever. Read on to learn more about some of the deductible expenses you can take advantage of.
We’ll share general guidelines but make sure to speak with your financial advisor and accountant for advice specific to your situation.
Advertising Expenses: If you’re marketing your property, any expenses incurred can be deducted. This includes hiring a photographer or a professional writer, paying hosting fees for a website, listing your properties on a rental website, or making copies of brochures. For those who use CHBO, you can deduct the expenses of marketing your property on the website to minimize your tax burdens.
Maintenance Expenses: Things like painting, cleaning, pest control, lawn maintenance, and others also are deductible expenses. If you need to clean the carpets in between tenants, that’s something you can deduct. In many cases, you can even deduct the costs of going to and from the property. Just remember you need to keep track of these expenses if you plan to use them with your taxes.
Homeowner’s Association Expenses: Some homeowner’s associations have a large number of fees, which can be frustrating. However, many HOAs offer benefits too. One thing you may not realize is that most of the fees from an HOA are tax-deductible. In many cases, HOA special assessment fees are also included in this category.
Insurance, Taxes, and Financial Services: Did you know that some taxes and insurance are tax-deductible? Things like liability insurance, property insurance, and property taxes are all included. If you refinanced a property in the prior year, closing costs also fit the bill. Tax preparation fees, legal fees, and similar things are also tax-deductible.
Educational Expenses: Whether you’ve bought a few books on how to manage a corporate property or attended a seminar for the same reason, those are often tax-deductible. If it was an expense related to your furnished rental, it’s always a good idea to get clarification since it could help with your taxes.
Whether you’ve already filed taxes for the year or not, keep these categories in mind for the future. Make sure you keep detailed records so you can get all of the tax deductions that you deserve. Once you know what the main tax-deductible expenses are, you may see that it makes a huge difference in your taxes. Good luck!
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