A significant benefit of investing in and owning rental property is the ability to deduct expenses when renting the property, such as maintenance, taxes, and interest. These expenses include, but are not limited to:
You are able to deduct these expenses in the year you pay them. For the most current list and information on expenses for tax deductions, go to the IRS Residential Rental Property Resource Page or consult your tax consultant.
CAUTION: You can deduct the cost of repairs to your rental property; however, you CANNOT deduct Improvements. Improvements add to the value of your property and increase basis. They are recovered by taking depreciation. Feel comfortable calling us directly for more information on depreciation.