There are a lot of great benefits to being a rental property owner. The income stream alone is usually enough to justify having a property or two - but all of the joy of having extra money tends to evaporate around tax time. Fortunately, there are numerous ways that you can minimize your rental property tax burden for the 2014 tax year. All you need to do is to follow these useful landlord tax tips.
First and foremost, you have to remember your deductions. As a rule, almost everything you spent money on in relation to the home is going to be write off - so take advantage of that. Did you spend money placing an ad for new tenants? Write it off. Did you have to repair something at the house? Deduct it! Even if you had to travel to the home just to meet with the tenants, the odds are in favor of you being able to deduct that expense.
You also need to be aware that a fair number of your operating costs on the property are also deductible. Your property taxes, for example, should be deducted every year. If you have a mortgage on the home, you can also deduct the interest that you pay on your mortgage. Even your homeowners insurance can provide you with some relief when it comes to tax time.
You also have the option of listing your real estate losses - a major savings factor if you had major damage to your rental property or had properties sit empty during the year. The amount of loss that you can claim varies by a number of factors, and it's usually a good idea to meet with a tax professional to find out about your savings.
As a rental property owner, you should always be on the lookout for landlord tax tips to help you through the process of minimizing your tax burden. Whether you are deducting your yearly expenses on your properties, dealing with losses or simply getting deductions for the basic costs of owning a property, you can find ways to decrease your overall tax burden and enjoy the monetary benefits of owning multiple properties. Remember, you're not on your own - if you want more ways to save, you should always consult a tax professional.
