Landlords, Just For You – Top Ten Tax Deduction Tips – Part II

By E-Renter Tenant Screening
Posted on March 16, 2007 under Landlord Tips | icon: commentBe the First to Comment

So, to continue with Part II of tax saving tips for owners of small residential rental property, tax deductions can be taken, as under:

  1. A landlord can deduct rental property repair costs, so long as, they are necessary, and the dollar spend is reasonable in amount. Repair costs are fully deductible the year they are incurred in, and some good examples of deductible repairs include, repainting, fixing gutters or floors, fixing leaks, plastering, replacing broken windows, and so on.
  2. And perhaps, you weren’t aware of the fact, but landlords are entitled to a tax deduction, for gas mileage expenses, whenever they drive anywhere for work relating to their rental business. Take for example, a trip to handle a tenant complaint, or to the hardware store for purchasing a repair part, is tax deductible on both counts, as the trip was made in relation to rental business travel.

Any travel related to a landlord’s rental activity offers two options for deducting vehicle-related expenses. On one hand, one can either deduct actual costs i.e. gasoline, upkeep, repairs, etc., or else use the standard mileage rate – 48.5 cents per mile for 2007; 44.5 cents per mile for 2006. However, bear in mind that in order to qualify for the standard mileage rate, the standard mileage method must have been used in the first year the car was used for rental business activity. Moreover, standard mileage rate cannot be used, if one has claimed accelerated depreciation deductions in prior years, or taken a Section 179 deduction for the vehicle.

That apart, landlords should make themselves cognisant with all rules and regulations before drafting tenancy leases or rental agreements. They must also take all necessary precautions, such as, tenant screenings, background checks on prospective tenants, including making certain all rental lease clauses are adhered to, as insurance for a litigation free landlord / tenant relationship. A simple click of the mouse and any landlord or property manager can visit for tenant screening and background check services., the best tenant screening agency in America!

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