If you’re at the discovery phase of becoming a landlord, it’s important that you have a clear understanding of what the process involves and how to best go about navigating the options available. Our team has significant experience as tax accountants in Northern California, and this latest post explains more about how being a landlord has a beneficial impact on your tax exposure.
You Can Deduct Repairs
If you complete repairs on the house to keep the property in good condition for your tenants, you can deduct the cost from your tax at the end of the year. Elements such as painting and other home improvements are tax-deductible.
Deductions for Depreciation
If your property depreciates in value, you can deduct the value of that depreciation from your tax at the end of the year. The depreciation of improvements such as roofing and structural elements can also be deducted.
Deductions for Expenses
In many cases, you will have expenses for managing the property, including the cost of finding tenants and managing their payments each month. These can be deducted from your taxes. Expenses such as cleaning and other forms of building maintenance can also be included in these deductions.
Review Potential Service Deductions
In some cases (but not all!), service deductions for processes such as cutting the grass, and improving guttering around the property may be deductible. But it’s important that you work directly with a qualified tax accountant in Northern California before taking on this process.
Another consideration as a landlord is your travel expenses. Are you spending a lot of time traveling between your various properties? These travel expenses such as gas could be tax deductible depending on the purpose of your visit.
Montgomery Taylor Family of Companies
Work with a qualified tax accountant in Northern California to begin assessing your real estate holdings and their potential tax benefits. Our Montgomery Taylor team is here to help. Call today for a consultation.