Property Management Tax Deductions: What You Can Claim
As a property manager, you know the importance of keeping your expenses down. One way to do this is to take advantage of all the tax deductions you’re eligible for. Here’s a list of some of the most common property management tax deductions you can claim:
Advertising and marketing expenses
You can deduct the cost of advertising and marketing your property, such as:
- Newspaper and online advertising
- Brochures and flyers
- Signage
- Open houses
- Tenant referral bonuses
Repairs and maintenance
You can deduct the cost of repairs and maintenance to your property, such as:
- Plumbing repairs
- Electrical repairs
- HVAC repairs
- Painting
- Roofing
- Landscaping
Utilities
You can deduct the cost of utilities for your property, such as:
- Electricity
- Water
- Gas
- Trash removal
- Sewer
Insurance
You can deduct the cost of insurance for your property, such as:
- Property insurance
- Liability insurance
- Flood insurance
- Earthquake insurance
Taxes
You can deduct the cost of taxes you pay on your property, such as:
- Property taxes
- School taxes
- Special assessment taxes
Depreciation
You can depreciate the cost of your property over a period of 27.5 years. This means you can deduct a portion of the cost of your property each year.
Other expenses
You can also deduct a variety of other expenses related to your property management business, such as:
- Office supplies
- Postage
- Legal fees
- Accounting fees
- Travel expenses
How to claim your deductions
To claim your property management tax deductions, you’ll need to itemize your deductions on your tax return. You can do this by using Schedule C, Profit or Loss from Business. When you itemize your deductions, you’ll need to provide documentation to support your deductions. This documentation can include receipts, invoices, and canceled checks.
Conclusion
By taking advantage of all the tax deductions you’re eligible for, you can reduce your taxable income and save money on your taxes. If you have any questions about property management tax deductions, you should consult with a tax advisor.
Bonus tip
If you use a property management software program, you can easily track your expenses and generate reports that can help you when you’re preparing your tax return.