Traverse City MI – 08-26-2019 – Landlords who consider renting out their property as against selling it will normally get a better benefit for the worth of their property. While it is true that there are a lot of general responsibilities associated with running a rental property, rental property tax deductions are available to help out. These deductions apply to so many expenses that are accepted within the rental industry. In a recent post, tax filing blog, American Tax Service sheds light on the different rental property tax deductions landlords can take advantage of.
First on the list is the interest payment on a mortgage. This is one of the largest homeowner deductions and is deducted on any amount paid to pay off the interest on the mortgage loan. Another one is the property tax. This could range from a few hundred dollars a year to as high as a few thousand dollars a year depending on the state and municipality the property is located.
Landlords can also take deductions on their insurance premiums. Insurance is a fully tax-deductible expense and could apply to home insurance, along with other forms of liability and disaster insurance. If you have people working for you, you can also deduct the cost of their health insurance and their workers’ compensation insurance as well. There is also the additional protection of being able to deduct the cost of damages in the event of theft, floods, earthquakes, and hurricanes.
Other tax deductions are the tax deductions for depreciation, deductions for maintenance and repair costs, utilities, etc. For a full list of all the rental property tax deductions, please visit, https://americantaxservice.org/rental-property-tax-deduction/
American Tax Service recommends homeowners claim the rental property tax deductions by filing online as this will be a much easier process. In case the same rental property is used as a primary residence at any time during the last tax year, filing online using tax software will provide the correct tax forms and be able to state how many days per year the home was used as a residence. Filing taxes online will help get the biggest tax refund possible.
About Frank Ellis
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for eight years and has published over 900 articles on leading financial websites.
American Tax Service
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Traverse City, Michigan 49686