| Basic tax advantages landlords receive from their | | | | depreciates considerably over time and so permits |
| investment in real estate properties are similar to those | | | | landlords to deduct some of the cost of depreciation |
| of every homeowner. These basic tax advantages | | | | every year for up to 27.5 years. Much of these costs |
| are the ability to deduct property tax expenses and | | | | do not even require you to spend anything to get back |
| mortgage interest costs from your federal tax return. | | | | money on your tax return. You simply have to file the |
| Beyond these deductions, as a landlord you have the | | | | cost of depreciation. The only time you will spend |
| advantage of many more tax incentives. If you provide | | | | money for a depreciation deduction is when you make |
| utility services such as water, heat and/or electricity at | | | | improvements to the property. |
| no cost to tenants, tax laws allow you to deduct these | | | | Accounting Fees are Tax Deductible |
| costs from the income on the property. Furthermore, | | | | Most landlords will probably find the assistance of an |
| all operating expenses for your rental property are tax | | | | accountant to be highly valuable at tax time. An |
| deductible. This would include maintenance and repair | | | | accountant specializing in rental property taxes can |
| costs such as the expense of repainting the property | | | | help you take advantage of all the deductions offered |
| or replacing windows, gutters and floors. Fees for | | | | to landlords. If the expense of hiring an accountant is |
| liability, property and rent loss insurance are also tax | | | | of concern, hopefully you will find relief in knowing their |
| deductible. | | | | fees are tax deductible. Similarly, the wages of |
| Thanks to depreciation deductions, landlords are | | | | employees hired to help keep books, care for tenants |
| offered tax advantages by the IRS for improving their | | | | and make repairs are deductable operating expenses. |
| rental properties. Improvements include installation of a | | | | Careful Record Keeping is Necessary to Receive Full |
| security system, a swimming pool, new furnace or air | | | | Tax Advantages |
| conditioner, any new appliances or upgrades to the | | | | While an accountant can be very valuable at tax time, |
| kitchen. Or perhaps you want to add on another room | | | | they won't be able to do much without records of your |
| or a porch to the rental home. These also would be | | | | spending and income. Therefore, whether you choose |
| considered an improvement, not an operating expense. | | | | to do your own taxes or use an accountant, always |
| These expenses may not be written off as operating | | | | keep receipts for absolutely everything! And, if you |
| expenses, they are written off as depreciation of | | | | want your tax filing process to go most smoothly, |
| improvement deductions. | | | | keep your receipts organized in one place. What |
| Depreciation Tax Advantages are Available Even | | | | should you keep receipts for? You'll want receipts for |
| Without Improvements | | | | office supplies such as desk organizers and |
| Tax advantages offered by a depreciation deduction | | | | notebooks. Keep receipts for the cost of your |
| may seem confusing at first, but should prove worth | | | | property advertisements posted in the local |
| your time to understand. Depreciation costs are those | | | | newspaper. And do not forget to save receipts for |
| accumulated by the normal wear and tear of every | | | | gas and car upkeep if you have several rental |
| residential property including rented buildings. Thankfully, | | | | properties that you are traveling between. |
| the IRS acknowledges the fact that a building | | | | |