Tax time is almost here, and this may be a time of year that you either look forward to or dread.
The good news is that you can get more from your taxes and actually look forward to tax time by following these simple tips
#1 – Always Deduct Your Repair Costs
Did you make repairs on your rental properties during 2018? If so, if you paid a repairman or another person $600 or more during the year to work on your properties, you must report those payments to the IRS.
#2 – Claim Your Home Office
Do you work from home or have And have a dedicated office space in your house? If so, don’t forget to deduct dedicated office space because, if its use exclusively for managing your rental properties you can definitely claim a portion of your house or that space against your rental revenues.
#3 – Use Rental Losses On Your Taxes To Your Benefit
Another important thing that you should do when filing taxes next year is to use your rental losses to your own benefit. As long as you are an active participant and real estate activity, you may be able to deduct up to $25,000 of rental losses to offset other income sources that came from your rental properties.
#4 – Minimize Your Tax Liability
Last of all, but most important, another great thing that you can do when filing taxes is to minimize your tax liability when you file. An example of this is tracking your mileage for every real estate activity including purchasing supplies, making bank deposits, driving to the post office or doing anything that relates to your investment properties.
Note – The tax tips in this article should be taken as advice so if you have further questions about how to get the most from your taxes come tax time, you should contact a tax preparer today.
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