Can You Deduct Your Mortgge Payment From Taxes

Can You Deduct Your Mortgge Payment From Taxes



Can you​ Deduct Your Mortgge Payment From Taxes?
As a​ landlord,​ you​ will want to​ make sure you​ take advantage of​ all of​ the​ tax benefits you​ can receive by owning a​ property .​
There are many other deductions than just the​ obvious ones .​
Expenses incurred to​ cancel a​ lease,​ reimbursements to​ renters for expenses that they have incurred and many others exist .​
Make sure you​ are taking advantage of​ all of​ the​ expenses you​ have.
Interest .​
Mortgage interest payments on​ the​ loan to​ purchase the​ rental property are a​ deductible cost,​ but make sure you​ also deduct interest on​ loans for improvements to​ the​ property,​ as​ well as​ credit card interest for credit card accounts you​ use to​ purchase any items or​ services for the​ property .​
Interest can be one of​ the​ largest deductible expenses for a​ landlord.
Depreciation .​
The cost of​ your property is​ recovered over time through depreciation .​
After the​ second year of​ ownership,​ you​ can claim depreciation over a​ 27.5 year period .​
Repairs .​
Any repairs you​ make to​ the​ rental property are deductible expenses in​ the​ year the​ expense occurs .​
These include painting,​ replacing broken windows,​ hiring a​ plumber to​ fix leaks,​ putting new flooring down,​ plastering walls .​
To qualify,​ you​ have to​ make sure the​ expenses are ordinary expenses in​ the​ cost of​ running the​ rental property,​ reasonable costs and not capital improvements.
Travel .​
If you​ have to​ travel to​ your rental property to​ collect rent,​ discuss issues with renters,​ attend renter association meetings or​ carry out repairs,​ you​ can deduct the​ cost of​ this travel .​
If you​ have to​ visit service providers such as​ plumbers or​ electricians,​ you​ can deduct that as​ well .​
If you​ are travelling from a​ distance,​ you​ can deduct the​ cost of​ your hotel as​ well.
Home Office .​
If you​ use a​ room in​ your home as​ an​ office to​ conduct the​ business of​ running your rentals,​ that portion of​ your own rent or​ mortgage is​ deductible.
Losses .​
You can claim any losses as​ deductions .​
These include fire and weather damage or​ floods .​
If you​ have insurance,​ you​ can only deduct the​ non-reimbursed portion,​ of​ course.
Insurance .​
The premiums you​ pay on​ your property insurance is​ deductible .​
You will probably have flood,​ fire,​ theft and liability insurance on​ the​ property.
Services .​
Any kind of​ fees you​ pay for services related to​ the​ property are deductible,​ such as​ attorney fees,​ accountant fees,​ payments to​ property management companies,​ real estate investment advisors and other professionals who provide you​ services to​ properly manage your rental property.
Some expenses that you​ may have are not deductible,​ however .​
If you​ have a​ loss of​ rental due to​ vacancy are not deductible,​ and certain modifications that are capital in​ nature such as​ a​ new roof,​ room additions,​ a​ new fence,​ etc .​
are not deductible.




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