Landlords & Property Owners
Whether you own an apartment building, a vacation home, or an office space, this tax guide will help you with many of the issues and questions you may run up against as a landlord.
The tax laws pertaining to landlords run the gamut from the simple and easy to decipher, to the complicated, which often require special attention to be able to navigate. The Rental Property Tax Guide is a one stop resource for landlords to educate themselves for the purpose of turning their investment into a profitable one that will yield dividends for years to come.
If you have any additional questions, please give us a call at 1-425-483-6600. Here are the sections our guide is broken up into:
The tax forms for reporting rental activity section goes over forms 1040, schedule E, and form 8825. These go over the necessary forms you’ll need whether you own the property independently, jointly, or as a corporation.
The best entity for rental property ownership goes over the various benefits of owning under llc, corporation, individual, limited partnership, and general partnership among others. Determine what works best for you by following this comprehensive guide.
Selling and reporting your rental refers to what and how you should report your capital gains when you sell your property. This factors in depreciation as well as additional expenses you may occur.
The taxable vacation home rental income section details how to determine if your rental is a tax free vacation home based on your personal and rental use. We provide a useful link to a calculator to help you determine personal vs rental hours so you can have a better idea of what to expect.
The “How To Deduct Startup Expenses” section goes over how to save on expenses when you’re renting an office space, apartment home, or similar situation. This is an extensive look at the different deductions you can expense (especially for startups), including but not limited to utilities, home maintenance and care, and even factoring in landscaping.
The home office deductions is a must-read if you’re want to deduct a portion of your home as an office. Many fear and claim (though it is unfounded) that this increases your risk of being audited by the IRS, however this is not the case if you follow these instructions and ensure your home office is abiding by all of them.
The personal car & public transport travel expenses section goes over how to expense your personal car (if that is what you use to manage and maintain your properties) as well as public transport rates as determined by the IRS.
The depreciation expenses section goes over just that, depreciation for a rental property. Explore this section if you need to know more about how you can improve the value of your rental properties. We evaluate what has been built, the land it sits on, fixed assets and other improvements.
The tax deductible rental loss section details the IRS passive loss rule, $25000 dollar offset, real-estate professional exemption, and the suspended passive losses deduction.
In the non-deductible expenses section, we go over what aspects of owning a rental property are not deductible. There are a certain amount of responsibilities in owning rental properties. As a result, some expenses are considered a part of those responsibilities and are non-deductible.
In the tax credits for landlords section, we go over the rehabilitation tax credit & low-income housing credit you may be eligible for if you meet the requirements.
In the LLCs for real estate investments section, we go over the different entities of small businesses and how structuring yours as an LLC often yields the most tax savings. It has the maximum flexibility and helps you avoid being taxed twice.
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