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

On with the tax deduction tips for landlords’ saga that relates certain measures that can be taken to save on tax payments.

1. In case, a landlord hires anyone, perhaps as an employee or an independent contractor to perform services for any rental activity, any payment made to them in form of salary of for services rendered can be deducted as a rental business expense. Simply put, deductions can be made, whether the worker is an employee e.g. a resident manager or an independent contractor e.g. a repair person.
2. If, rental property is damaged or destroyed, as a result of any sudden event like fire or flood, the owner is entitled to claim a tax deduction for all or part of his / her loss. Called casualty losses, however, one may not be able to deduct the entire cost of damaged or property destroyed by a casualty. Your deduction amount will depend on the extent of damage sustained and, whether the loss was covered by insurance.

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 www.e-renter.com for tenant screening and background check services. www.e-renter.com, the best tenant screening agency in America!