Wednesday, June 16, 2010

Tax Deduction of the Week: Rental Properties

Yesterday, the Roni Deutch Tax Center – Tax Help Blog posted a new entry in their deduction of the week series. This new article discusses rental properties and the tax deductions available to landlords. You can find the text of the blog entry below, or visit the Roni Deutch Tax Center – Tax Help Blog and subscribe to the RSS feed to stay updated on all future deduction of the week entries.


As a landlord you will pay a decent amount of money in interest. Fortunately, many of these expenses can be deducted on your tax return including mortgage interest, loans to improve the property, and credit card interest on goods or services used in your property management.

Travel Expenses

If you have to travel to maintain your rental, collect rent, or show off the property, then you can deduct these expenses. You have the option to either deduct the actual expenses – which can be especially useful if you must travel by plane and stay in a hotel – or take the IRS’ standard mileage rate for any miles driven.

Home Office

If you have a home office that you use to run your property management business then you may be eligible to claim the home office deduction. However, in order to qualify as a home office in the eyes of the IRS the room must meet certain specifications. To learn more about the home office deduction check out this deduction of the week entry from earlier this year.

Employees, Independent Contractors, and Professionals

Any wages paid to an employee or independent contractor (such as a property manager or on call repair person) can be deducted as a business expense. Additionally, fees paid to a professional (such as an attorney, accountant, real estate investment advisor) can also be deducted as operating expenses.

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