Skip to Content

Can I Claim It? Income Tax Deduction Information for Flowood Rental Property Owners

Tax deduction written on a piece of paper. There are various key tax deductions for rental property owners that you should be aware of to lower your taxable income and enhance your profitability. Deductions usually have to be claimed in the same tax year that the associated expenses were incurred. If you want to make the most of your deductions and tax breaks within the bounds of the law, it is imperative that you consult with a tax expert or accountant.

Nondeductible expenses

Alternatively, non-allowable tax deductions are costs that cannot be deducted to lower taxable income. Things like getaways, new clothes, and groceries are examples of non-rental property-related personal expenses; as well as:

  1. Monthly mortgage payments. While mortgage interest and property taxes are both deductible, loan principal payments are not.
  2. Even when the entertainment is connected to your business, entertainment costs are not deductible. Business dinners, on the other hand, are still deductible, though the restrictions have changed under the new rule.
  3. Business gifts valued over $25 and given to any one person during the tax year are not deductible.
  4. Club dues, such as subscriptions to gyms, country clubs, or other clubs, are not deductible even if you are entertaining for business purposes.
  5. Capital improvement costs such as installing new windows or a new roof on your rental house, must be depreciated not deducted.
  6. Other taxes, including state income taxes and local sales tax. These should be included in your personal income tax return.
  7. Fines and penalties, such as those levied by the IRS for underpayment of a prior year’s taxes and late payment fines.
  8. Political contributions, including anything spent on lobbying costs or campaign events.
  9. Home office space unless it is used exclusively for business purposes. Even having a family computer in the room may mean that your home office deduction is disallowed.

Income tax deductions, in the end, might be complicated and hard to grasp. While a tax expert is your best bet for advice on any issues or queries with your taxes, there are things you can do to make the most of your time and money. If you use Real Property Management Omega, we’ll help you through the maze of tax deductions so you’re never left wondering if you’ve overlooked anything.

If you need help making sure you’re claiming every legitimate tax deduction and avoiding any red flags with the IRS, our Flowood property management team is here to help. With our assistance, you may prepare yourself for success during tax time and all year long. If you have any questions, please call us at 601-607-8202 or contact us online.

We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. See Equal Housing Opportunity Statement for more information.

The Neighborly Done Right Promise

The Neighborly Done Right Promise ® delivered by Real Property Management, a proud Neighborly company

When it comes to finding the right property manager for your investment property, you want to know that they stand behind their work and get the job done right – the first time. At Real Property Management we have the expertise, technology, and systems to manage your property the right way. We work hard to optimize your return on investment while preserving your asset and giving you peace of mind. Our highly trained and skilled team works hard so you can be sure your property's management will be Done Right.

Canada excluded. Services performed by independently owned and operated franchises.

See Full Details