Here is an article on Rental Property tax deductions. The Nerdwallet article focuses on the 5 Big Rental Property deductions. The five big deductions are mortgage interest, depreciation, property taxes, repairs, and other expenses. If you know anyone with rental properties, please feel free to forward the article as the information could benefit them.
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Source: NerdWallet | Repost RE Donica & Associates 2/20/2023 –
Owning a rental property can generate some extra income, but it can also generate some great tax deductions. Here are five big ones that tax pros say should be on your radar if you’re thinking about buying a rental property.
1. Mortgage interest
“Mortgage interest is tax-deductible for your rental property because it’s a business expense,” says Thomas Castelli, a certified public accountant in Raleigh, North Carolina.
Sometime in January or early February, you should receive a Form 1098 from your mortgage lender showing the interest you paid for the year. When you file your tax return, in most cases you take the deduction on IRS Schedule E, which is for residential rental property owners.
Many people think of their homes as investments that become more valuable over time, but think of a rental property as more of a business asset, similar to a desk or a forklift.