Top Rental Property Tax Deductions…
Owning a rental property has some great tax breaks, so it is important that you take advantage of them while consulting with your tax professional. Remember that each situation is unique and to refer those experts, but here are our top 3 tax benefits for rental property owners.
Independent Contractor expenses- What you pay your cleaners, plumbers, handymen, etc. are tax deductible if you are paying them as independent contractors.
Marketing- If you advertise your property with premier exposure on Airbnb, VRBO, or any other rental websites, that is a deductible expense. In competitive markets these can be a very effective way to get more bookings, don’t forget that they are tax deductible!
Management Fees- Yes management fees along with any other professional services such as legal or accounting are all tax deductible.
Travel Expenses- If you visit your property where the primary purpose is rental related, both short and long distance travel can be written off. Activities such as “market research”, or “meeting other property owners in the area” are included.
Insurance- Insurance premiums including liability, casualty, and any other insurance related to the vacation rental are deductible.
Remember to consult your tax professional and ask about any other tax breaks that you could be eligible for. These tax deductions can make a big impact on the profitability of your vacation rental.