5 Landlord Tax Deductions You Need to Know About (Including Property Management Fees)

How to Write Property Management Fees (and More!) Off Your Tax Return

Do you know all the landlord tax deductions available to you? We show you five of the most valuable

There is a lot of good that comes from being a landlord. However, one of the best parts of being a landlord is the tax deductions. Those who own and rent out properties have many deductions available to them.

Curious as to what these deductions are?

Keep on reading. In this article, we’re going to discuss 5 landlord tax deductions that you should know about.

Landlord Tax Deductions

As a landlord, you have plenty of tax deductions that you can take advantage of. Five of the most common are as follows.

1. Property Management Fees

Do you hire a property manager to look after one or more of your properties? If so, you should know that the wages you pay to that manager can be deducted from your taxes.

Property management fees count as rental business expenses, and rental business expenses can always be deducted.

Other rental business expenses that can be deducted include maintenance work and landscaping work.

2. Travel Related to Property Repairs

You might be surprised to hear that you can deduct travel expenses related to your properties.

Any travel expenses which are incurred while in the process of repairing or maintaining a property can be deducted.

This includes expenses incurred while driving to a property to make a repair or driving to a store to pick up a repair part.

If you’re going to take this deduction, make sure to have your ducks in a row. Keep all of your receipts for gas, repair parts, and services.

In the event of an audit, these receipts will help prove to the IRS that you’re being truthful.

3. Property Repairs

Not only can you deduct expenses racked up while traveling to make repairs on your properties, but you can also deduct expenses racked up on the repairs themselves.

These repairs include everything from patching leaks, to painting walls, to replacing windows, and more.

Note, however, that the expenses associated with improvements cannot be deducted. You can only deduct an expense if it was associated with the standard upkeep of your property.

4. Insurance

If you own a rental property, you probably have a number of insurance policies associated with it. If so, you can deduct all of the premiums that you pay for them.

This is true of fire insurance, flood insurance, theft insurance, liability insurance, workers’ compensation insurance, and more.

5. Legal Fees

Perhaps you utilize the services of a lawyer to ensure that the managing of your properties is on the up and up? Maybe you’ve used legal services to settle a dispute with a tenant? If so, a deduction is on the horizon.

Any legal fees paid in the process of managing your property can be deducted from your taxes. These count as operational expenses.

Interested in Renting Out Your Home?

Are you looking to benefit from these landlord tax deductions? Interested in renting out your home? If so, you might want to hire a property manager.

If you’re in need of a property manager in King or Snohomish County, Washington, VerraTerra Real Estate Services has you covered. Contact us today to discuss details!

—

Disclaimer: This article is for informational purposes only. Please consult your legal or tax professional for specific tax advice.