What Form 4797 Deductions 2024-2025

Music. In this episode, we will be discussing the top 10 tax deductions for landlords. Individual owners of residential rental property often pay more in taxes than what's required of them. Fortunately, rental property offers more tax saving benefits than many other types of investments. The following is a list of the top 10 most common expenses for rental property tax deductions: 1. Repairs and maintenance: Repairs, including painting, fixing floors, patching leaks, plastering, and replacing broken fixtures, are permissible tax deductions for the year in which they occurred, but not for improvements. 2. Depreciation: The purchase price of a rental property is not fully deductible during the tax year it's acquired. However, landlords may deduct a portion of the real estate acquisition costs through depreciation. The IRS says you can depreciate a rental property for twenty-seven and a half years, known as its recovery period. So, take the cost of the property, known as its basis, and you can deduct 3.63% of this amount every year during its recovery period. 3. Interest payments: As one of the largest landlord deductions, this includes mortgage interest used to purchase or improve rental property, and credit card interest on products or services for the rental property. 4. Vehicle: Whenever you drive for your rental property to see tenants or contractors, do maintenance, etc., your vehicle expenses can be deducted using one of two options. The first option simply allows you to deduct your expenses, such as gas and repairs. The second option has you calculate the standard IRS.gov mileage rate based upon how many miles you've driven for your property. 5. Travel: If you travel long distances for your rental property, you can deduct your airfare, hotel bills, meals, and related expenses such as parking fees. 6. Legal and professional fees: Any...