Maximizing tax deductions can significantly enhance the profitability of your rental property. Here’s how to navigate rental property tax deductions:
1. Mortgage Interest
Deduct the interest paid on your rental property mortgage.
2. Property Taxes
Claim deductions for property taxes paid on your rental property.
3. Repairs and Maintenance
Deduct expenses for repairs and maintenance, keeping detailed records of all work done.
4. Depreciation
Claim depreciation on the rental property, spreading the cost over its useful life.
5. Professional Services
Deduct fees paid to property managers, accountants, and other professionals who assist with your rental property.
By understanding and claiming all eligible tax deductions, landlords can reduce their taxable income and improve the profitability of their rental properties.