What can you offset against rental income in 2017?

What can you offset against rental income in 2017?

As a landlord, it’s important to understand what expenses you can offset against rental income to reduce your tax liability. Here are some of the common costs that you can deduct from your rental income in 2017:

1.

Can I deduct mortgage interest?

Yes, mortgage interest is one of the most significant expenses that landlords can offset against their rental income.

2.

Can I deduct property taxes?

Yes, property taxes are another deductible expense that landlords can offset against their rental income.

3.

Can I deduct insurance premiums?

Yes, insurance premiums for your rental property are considered deductible expenses.

4.

Can I deduct repairs and maintenance costs?

Yes, expenses for repairs and maintenance on your rental property can be offset against your rental income.

5.

Can I deduct utilities?

If you pay for utilities on behalf of your tenants, such as water or electricity, you can deduct these costs from your rental income.

6.

Can I deduct property management fees?

Yes, any fees paid to property management companies can be deducted from your rental income.

7.

Can I deduct advertising and marketing expenses?

Yes, expenses related to advertising your rental property, such as listing fees or signage costs, can be offset against your rental income.

8.

Can I deduct legal fees?

Legal fees related to your rental property, such as drafting lease agreements or dealing with tenant disputes, can be deducted from your rental income.

9.

Can I deduct travel expenses?

If you travel for purposes related to your rental property, such as meeting with tenants or visiting the property for maintenance reasons, you can deduct these travel expenses.

10.

Can I deduct depreciation?

Yes, landlords can deduct depreciation of their rental property as an expense against their rental income.

11.

Can I deduct home office expenses?

If you use a portion of your home as an office for managing your rental property, you can deduct home office expenses from your rental income.

12.

Can I deduct interest on loans for rental property improvements?

Interest on loans taken out for improvements or renovations on your rental property can be deducted from your rental income.

By taking advantage of these deductions, landlords can minimize their taxable rental income and maximize their profits. It’s essential to keep accurate records of all expenses related to your rental property to ensure that you can claim these deductions correctly on your tax return. Consulting with a tax professional or accountant can also help you navigate the complex rules surrounding rental property deductions and ensure that you are maximizing your tax benefits as a landlord.

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