Safe Harbors and Your Rental Property Tax Deductions

In previous articles, we discussed tax deductions for landlords and repairs vs. improvements. Today we‘ll offer insight into ‘safe harbors.‘ The IRS offers three variations, which can help landlords sidestep the “Is this a repair or an improvement issue.“   Safe harbor for small taxpayers  Safe harbor for routine maintenance  De Minimis safe harbor    Safe Harbor for Small Taxpayers (SHST)   The SHST permits … Read More

Taxes – Repairs vs. Improvements 

Maintaining your rental property is a given. From minor repairs to major renovations, these repairs and improvements can be deducted from your taxable income. The key is knowing the difference between a repair and an improvement. Repairs can be fully deducted in the year you experienced it. Improvements, however, must be depreciated over multiple years.   … Read More

Tax Time – Your Rental Property Meets April 15th

The many benefits of owning rental properties are well known.  Unlike other investments, real estate has various avenues for profitability such as: monthly cash flow, property appreciation, equity growth from mortgage paydown, and the ability to use depreciation to reduce tax expenses.  ALL GOOD THINGS! Of course, it’s important to properly report income, expenses and … Read More

5 Common Mistakes Landlords Make

1. Not Properly Screening Tenants: Screening all occupants that are 18 or older helps ensure you find high-quality tenants that will care for your home. Screening should include credit, criminal history, eviction history and employment verification. It’s important to set minimum criteria for each to determine a qualified applicant. 2. Not Performing Routine Inspections: Inspections are important … Read More