As a long distance landlord, it is likely that your expenses really add up each year. In addition to the cost of a mortgage on your properties (if applicable), you may also spend a considerable amount getting to and from your investments on a regular basis.
With that in mind, it is important that you have a good understanding of the tax deductions that you may be able to take – which, in turn, could add significantly to your investment’s bottom line.
Just some of the most common tax deductions for rental real estate owners include the following:
- Maintenance and repairs – There is oftentimes a long list of various maintenance and repair items that could be deducted on your tax return. Just some of these include the cost of pest control, pool cleaning, and HVAC filters, as well as plumbing and roof repairs and painting.
- Property depreciation – When it comes to property depreciation, there are actually several types of expenses to be aware of. These include the value of the structure (not including the land), the value of any improvements you have made, and equipment that is necessary for running your rental property.
- Homeowner’s association dues – If you own a property that is part of an association, such as a condominium, then you could write off the amount of your monthly HOA (Homeowner’s association) dues.
- Travel expenses – If you have to travel to get to your rental properties, you could deduct the cost of airline tickets, gas, and hotels.
Another key expense that may be deducted by a real estate investment owner is management costs. Working with a professional property manager can have other benefits, too, such as freeing up your time from the day-to-day duties of collecting rent and maintaining your property.
For more information on the many benefits of hiring a property manager, give Benoit Management a call today.