Last Minute Tax Deductions for Rental Property Owners

How to Manage Collections and Delinquency as a Landlord

By RPM Central Valley

Tax time is just weeks away now and many owners are getting ready to file their taxes.

The good news is that if you haven’t filed your taxes yet there are a variety of tax deductions all U.S. rental property owners can use including the following.

Employees and independent contractors

Landlords can deduct wages and salaries for employees, such as for residential managers and staff grounds maintenance workers. Other tax-deductible services that can be used as deductions are independent contractors, such as:

Carpenters, electricians and plumbers;

Architects, landscapers and gardeners;

Roofers, carpet-layers and painters.

Rental property deductions

Deductible expenses for rental property

A landlord is allowed to deduct any reasonable expenses used in the conduct, maintenance and managing of her rental properties. That includes:



Necessary and reasonable repairs to the property

Travel costs incurred while doing business

Expenses that are sometimes overlooked, according to David Ayoub, CPA in Syracuse, N.Y., are meal and entertainment expenses for employees. “You can only deduct 50 percent of meal and entertainment expenses incurred while doing business with potential clients or business associates. However, if you throw a Christmas party or a summer picnic for your staff, it’s 100 percent deductible.”

Accidental landlords

It’s not unusual for someone to become a landlord out of circumstantial necessity.

“You see people moving out of town or state to go to a better job. If they can’t sell their house, they rent it,” Ayoub notes. “If you rent your home for three years out of five, and then sell it, the capital gain is taxable.

However, if you sell it within two years, you don’t have to claim capital gain. You’re also entitled to the same deductions as any other landlords. As with any rental property, make sure you have landlord insurance on your home. It’s deductible as an expense, too.”

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Last Minute Tax Deductions for Rental Property Owners

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