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As a landlord, you’ll want to make certain you take advantage of all of the tax benefits you can receive by owning a property. There’re many other deductions than just the obvious ones. Expenses incurred to cancel a lease, reimbursements to renters for expenses that they have incurred & many others exist. Make sure you’re taking advantage of all of the expenses you have.

Interest. Mortgage interest payments on the loan to purchase the rental property are a deductible cost, but make certain you also deduct interest on loans for improvements to the property, as well as credit card interest for credit card accounts you use to purchase any items or services for the property. Interest can be one of the largest deductible expenses for a landlord.

Depreciation. The cost of your property is recovered over time through depreciation. After the second year of ownership, you can claim depreciation over a 27.5 year period.

Repairs. Any repairs you make to the rental property are deductible expenses in the year the expense occurs. There is more. These include painting, replacing broken windows, hiring a plumber to fix leaks, putting new flooring down, plastering walls. There is more. To qualify, you have to make certain the expenses are ordinary expenses in the cost of running the rental property, reasonable costs & not capital improvements. Do inquire if you can also include the cost of cnc machines & tools as well.

Travel. If you have to travel to your rental property to collect rent, discuss issues with renters, attend renter association meetings or carry out repairs, you can deduct the cost of this travel. If you have to visit service providers such as plumbers or electricians, you can deduct that as well. If you’re travelling from a distance, you can deduct the cost of your hotel as well.

Home Office. If you use a room in your home as an office to conduct the business of running your rentals, that portion of your own rent or mortgage is deductible.

Losses. You can claim any losses as deductions. There is more. These include fire & weather damage or floods. If you have insurance, you can only deduct the non-reimbursed portion, of course.

Insurance. The premiums you pay on your property insurance is deductible. You’ll probably have flood, fire, theft & liability insurance on the property.

Services. Any kind of fees you pay for services related to the property are deductible, such as attorney fees, accountant fees, payments to property management companies, real estate investment advisors & other professionals who provide you services to properly manage your rental property.

Some expenses that you may have are not deductible, however. If you have a loss of rental due to vacancy are not deductible, & certain modifications that are capital in nature such as a new roof, room additions, a new fence, etc. are not deductible.

The author Vince Paxton is very interested in questions about woodworking tools. You can learn about his articles on cnc machines & tools at http://www.insidewoodworking.com & various other sources for cnc machines & tools information.

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