Simplify Tax Season: A Guide for Corporate Housing Hosts
Admin
Published Date: 2025-01-24
As tax season approaches, it's essential for corporate housing property owners to prepare thoroughly to ensure compliance and optimize financial outcomes. Last winter we offered advice in our blog post, Get Ready for Tax Season as a Corporate Housing Property Owner. CHBO is here to help guide you through this upcoming tax season.
Here are key steps to guide you through the process:
1. Understand Your Tax Obligations
Recognize that rental income from your corporate housing properties is taxable and must be reported to the IRS. Familiarize yourself with the specific tax forms and schedules required for reporting rental income and expenses.
2. Maximize Deductible Expenses
Identify and document all expenses related to your rental property that may be deductible, including:
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Mortgage Interest: Interest paid on loans used to acquire or improve your rental property.
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Property Taxes: Annual taxes assessed by local governments.
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Operating Expenses: Costs such as utilities, maintenance, repairs, and property management fees.
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Depreciation: A portion of the property's cost can be deducted annually over its useful life.
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Insurance Premiums: Premiums for coverage on your rental property.
For a comprehensive list of deductible expenses, refer to IRS Publication 527, "Residential Rental Property."
3. Maintain Accurate Records
Keep detailed records of all income and expenses related to your rental property. Organized documentation not only simplifies tax filing but also provides support in case of an audit.
4. Be Aware of Local Lodging Taxes
Depending on your property's location, you may be required to collect and remit lodging taxes. Check with local municipalities for laws, tax rates, and regulations. CHBO partners with Avalara MyLodgeTax to assist property owners with lodging tax compliance.
5. Consider Professional Assistance
Given the complexities of tax regulations, consulting with a tax professional experienced in real estate can be beneficial. They can provide personalized advice and ensure you're taking advantage of all available deductions.
6. Stay Informed on Tax Law Changes
Tax laws are subject to change. Stay updated on any modifications that could impact your tax obligations as a property owner. The IRS website and professional tax advisors are reliable sources for current information.
By proactively managing your tax responsibilities, you can optimize your financial outcomes and ensure compliance as a corporate housing property owner.
