With income tax season just finished, the headache of getting your filings done is still fresh in your memory.
If you own a rental property, you know all the more about how overwhelming it can be to complete your taxes. That’s why we’ve compiled a few tips and time-savers that will help you next year, and every year after.
Make sure to claim deductions
Your rental property generates income for you, and you want to offset that column by knowing the ins and outs of deductions and taking advantage of the best approach for your financial situation.
For starters, you can claim deductions for the cost of any advertising for your properties that you did during the year. Likewise, cleaning and maintenance are deductible, as are mortgage interest, utilities, insurance premiums and any legal fees incurred.
Also on the list are commissions, property management fees, association dues, pest control, trash removal fees and yard maintenance.
What many landlords don’t know is that deductions are allowed for travel to and from the property for things like showing it to prospective tenants and performing maintenance. Even if you’re within a few miles, log it every time – the trips will add up. If your property is out of your area, make sure you only deduct the portion of the trip that relates directly to the rental property’s management, conservation or maintenance.
Keep your personal finances separate
Many landlords and property renters recommend keeping separate banking accounts for your rental property and personal incomes. This allows you to have a simpler time separating your assets and can make the process of filing your income at tax time easier. Plus, separating your accounts can allow you to more easily manage the month-to-month expenses and track incomes versus expenditures more closely.
For answers to general questions, start with these rental tax topics from the IRS. Don’t forget that property management fees can also be deducted, as well.
If you’re in need of experienced property management services, trust the team at AMG Property Management to handle your needs. Whether a single property or a large apartment building, we’ve worked with clients large and small and can help you succeed as a property renter.
To find out more about our full range of property management services, we ask that you call us today at 317-252-5830.