Video instructions and help with filling out and completing What Form 4797 Deductions

Instructions and Help about What Form 4797 Deductions

Music in this episode we will be discussing the top 10 tax deductions for landlords Music 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 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 depreciation the purchase price of a rental property is not fully deductible during the tax year its 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 it's recovery period so take the cost of the property known as its basis and you can deduct three point six three percent of this amount every year during its recovery period interest payments as one of the largest landlord deductions this includes mortgage interest views to purchase for improve rental property and credit card interest on products or services for the rental property Music 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 that could be gas repairs etc the second option has you calculate the standard IRS gov mileage rate based upon how many miles you've driven for your property 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 legal and professional fees any payments made to attorneys property managers accountants etc involving your rental property may be deducted insurance you can deduct the premiums you pay for insurance for your rental property this includes fire theft flood and landlord liability insurance home office you can deduct the portion of your personal homes expenses used for managing your rental property business this is often a dedicated room or area where you screen tenants pay bills etc the IRS allows for a percentage of utilities rent insurance depreciation mortgage interest property taxes and some casualty losses repairs and improvements to reduce your taxable income wages when you hire an employee or contractor such as a plumber electrician etc to perform a service for your rental property you are permitted to deduct the amount you pay them it's important to note that if you pay six hundred dollars or more to any one individual during the year that's not incorporated the IRS requires you to issue them form 1099 - miscellaneous this form requires the person's social security number and the amount you paid them casualty and theft if your rental property is damaged or destroyed from a fire flood theft etc you are often able to deduct the portion of your loss that is not covered by insurance such as having a deductible Music you you