Most people know that with home ownership comes with many tax deductions, but with investment properties your tax breaks are even greater! Rental incomes provide more tax benefits than most any other investment. Here are 10 advantages of owning Fountain Hills rental property.
1. Property Taxes – Deduct your property taxes
2. Mortgage Interest – Biggest deduction of all
3. Depreciation- Deduct a portion of the cost of your property over several years
4. Legal and Professional Services- Attorneys, accountant, property management can be deducted as an operating expense.
5. Repairs- Painting, carpet cleaning, window washing, landscaping, anything necessary and reasonable. If you hire a handyman or any service provider you can deduct the cost of his services. If you do repairs yourself you can deducts cost of supplies.
6. Appliance replacement- Do you need a new stove or refrigerator?
7. Local Travel –Deduct cost of gas or mileage to and from rental property for example: to deal with tenants complaints, collect rents, to and from hardware store.
8. Long Distance Travel- Do you have income property out of state? You can deduct cost of travel, hotel stays and meals.
9. Property insurance- Includes fire, theft, landlord liability
10. Advertising for vacancies- Ads in paper, online ads, distribution of flyers and cost of printing, credit reports.
Don’t pay more than you need to! Consult with your tax accountant to find out if you are reaping all the benefits of having Fountain Hills investment properties. Call/Text or email me for quick response to all your questions!