As Minnesotans, we can count on a few certainties in life. We will complain about winter but most of us will continue to live here year after year. The purple and gold will annually frustrate fans by not winning the big one, but we will keep cheering “Skol Vikes.” And don’t forget road construction season, which is referred to as ‘summer’ in other states. These are but a few of life’s certainties in Minnesota.
No matter where you live, death and taxes are usually regarded as the two universal guarantees in life. Neither are pleasant topics but both are inevitable. Actually, you can get by without paying taxes but you’re strongly advised against that approach. The government tends to frown on those avoiding taxes and the financial penalties are harsh.
Fortunately, as property owners who rent out their property, tax time can be easier to stomach. There are plenty of tax deductions available to landlords within the U.S. tax code. As always, consult with a tax professional to learn more. Here are a few of the most popular deductions a landlord should keep in mind:
- Loan interest if there is a mortgage on your property: This is the big one. If you have a loan on your investment property, the interest is tax deductible. That can be a large amount!
- Legal, Professional and Management Fees: With a rental property comes the need for help with taxes, accounting, legal and property management support. These professional fees are tax deductible.
- Travel Expenses: If you don’t live near your investment property, we can deduct travel expenses like airfare, ground transportation, food and overnight stays.
- Utilities: If you pay for any utilities at your investment property, those costs are deductible. They include gas, electricity, water and city services like garbage and recycling.
- Repairs: Repairs refer to fixing items that no longer work properly and include fixtures, plumbing, air conditioning and even the fees for hiring contractors and renting tools for said repairs.
- Maintenance: There are plenty of maintenance expenses that are different than ‘repairs’. They include lawn care, pest control, tune-ups on lawn care equipment and even light bulbs and smoke detector batteries!
While Tax Day typically falls on April 15, this year we have a few extra days. That’s due to Emancipation Day being recognized on Friday, April 15. That pushes Tax Day to the following Monday. So you’ve got a few extra days to prepare your taxes. Use them wisely!