Navigating your taxes can seem like a big deal even when you aren’t a landlord. However, renting out your property (or properties) can add a whole new, complicated dimension to your taxes.
To make your life a little easier, we’ve put together some basic tax deductions for landlords. Keep reading to find out more!
Deduct Your Operating Expenses
Operating expenses will likely make up the bulk of your deductions. Almost any expense you make to keep the property safe and habitable is considered an operating expense. Here are some of the more common landlord deductions that come from operating expenses:
- Advertising: If you’ve paid any fees to advertise your rental properties, you can deduct those costs.
- Cleaning/Maintenance: If you or anyone that works for you cleans or does routine maintenance at the property during the year, the associated costs can be deducted.
- Repairs: Repairs are not the same as improvements, which are a different category altogether. If something breaks and you need to call a repair company to fix it, the cost of the repair is deductible. If you are upgrading something in the home, remodeling, or adding wheelchair ramps or other accessible options, it could be considered an improvement.
- Services: Pest control, yard work, and other services that you have to pay another company to complete can be deductible. Make sure that you keep all of your receipts and paperwork.
- Property Taxes: If you’re renting out a property you own, the property taxes that you’re responsible for could be a deduction.
These deductions only scratch the surface. There are more deductions that you are entitled to as a landlord, so make sure you do your research before filing your taxes. Don’t miss out! When you need advice, tips, or a tax professional in San Antonio, call Pro Tax Resolution!