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Slash
Your Landlord Taxes Today with
These Rental Property Tax Deduction PART 2
When
it comes to rental property investing, it's crucial to know what are
your rental property tax deduction because it can have a heavy impact
on your
profits as a landlord. Save money and pay less taxes with this Part 2 of our Guide
to Landlord Tax Benefits.
Have You Read
Point 1 to 4? If No, Click here for Part 1 of this
Rental Property Tax Deduction Guide.
5.
Traveling
Costs for Rental Activities - Overseas Property
If you own
rental real estate in foreign countries, the money that you
spend traveling and staying overseas may even be tax
deductible as long as you are using it for the purpose of managing your
real estate.
The good news is that in some areas almost all of your overseas
expenses can be deducted. This includes hotel bills, air tickets, taxi
fares and even meal expenses. Naturally some landlords will try to mix
business with pleasure but remember do not overdo it. Claiming tax
breaks for a 6 month holiday will be next to impossible.
It's also
vital to keep detailed records of all your bills and
receipts. The tax agencies tend to be quite strict on tax deductions
for overseas travel especially for larger claims.
6.
Traveling Expenses for Rental Activities - Local Property
Whenever
you drive for rental management purposes, the traveling
expenses will be tax deductible. This includes driving costs incurred
for rent collection, meeting your tenants to handle their problems and
going to the hardware store to buy tools and materials for repairs.
To claim these rental property tax deductions, do remember
to keep your
gasoline receipts and bills for vehicle repairs and maintenance.
7.
Home Office for Managing Your Rental Properties
If
you meet certain legal requirements, some areas will even
allow you to label your house as a home office. This works in
your
favor since all the office equipment and stationery that you spend on
property management can be used to offset your real estate taxes.
Home office
expenses are not just the only rental property tax deductions you can
claim here. If you set up a home workshop to maintain and repair your
rental properties, the money that you spend on this workshop is likely
to be tax deductible as well.
Now you know what they mean people say that rental property investing
is a smart way to find tax shelters.
8.
Insurance for Your Rental Property and Employees
The
premiums that you fork out for your rental property are all tax
deductible. This covers almost all types of landlord insurance
including building, fire, liability and content insurance.
If you hire long term staff to manage your rental properties, their
health and work insurance can also be deducted in most countries.
Read
what our visitors have to share below OR Scroll down to
add your own comment
How do You Make Use of Rental Property
Tax Deductions to Save Money on Taxes?
Knowing your tax deductions and making use of them are two totally different matters. Do you know any clever or creative ways to save money on your rental property tax? Share your valuable experience with everyone here - We will love to hear your tips, comments and real life stories:
Tips for Making Use of Rental Property Tax Deductions from Our Visitors
Click on the links below to read the valuable tips that our other visitors have to share:
Casualty and Theft Tax Deductions
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Do you know that casualty and theft losses can be considered as rental property tax deductions as well? Read on to learn if you can turn your unexpected ...
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slashing your property taxes?
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