Rental properties are an excellent way to build wealth. However, you want to make sure you’re maximizing your return during tax season. The IRS offers advantages to landlords and also has specific tax requirements. Familiarizing yourself and working with tax services will help you get the most from your rental properties.

How to File for Taxes as a Landlord

1. Pay Attention to Interest

Landlords can deduct loan interest payments on their rental properties. The same applies to interest on a credit card purchase to upgrade or repair the property. These can be significant deductions, and because of the math involved, it’s best to work with a tax services professional so you file the right numbers.

2. Track Asset Purchases & Depreciation

Always keep paperwork on new appliances, home upgrades, and any equipment you use to manage your properties. Larger, high-value purchases may qualify as depreciable assets.

As long as you have paperwork showing the original purchase price and date, you can claim tax deductions as they depreciate over the years. New roofing, a new washer and dryer, or a work laptop are all examples of eligible assets.

3. Don’t Forget Travel

If you manage several rental properties or work with local contractors regularly, you might spend a lot of time driving. This is work-related transportation.

You can deduct from your taxes for every mile you travel. Work-related vehicles become depreciable assets, and you may also be able to write off expenses and repairs.

4. Deduct Professional Services

Hiring tax services professionals, a lawyer, or accounting services are an excellent way to organize your finances. They’re also often tax-deductible.

Fees are considered operating expenses. As long as they’re directly related to your rental operations, take full advantage of using professional services.

If you’re looking for tax services in the Lincoln, NE, area, the team at Balanced Bookkeeping & Tax Services can help. This trusted accounting service welcomes personal and business clients and specializes in tax planning and filing. They will ensure you take all the necessary steps to maximize deductions and meet IRS guidelines. Visit their website to explore their full scope of work or call (402) 466-4272 to schedule a consultation.