Do you own residential property that’s been producing a marginal profit or a loss the past few years? Short of raising the rent, you’re fighting an uphill battle as your expenses continue to grow each year.
Strategy: Mine every last deduction you can from your rental activities. A little extra diligence on your part can reduce your taxable income. You might even qualify for a deductible loss.
Surprisingly, many landlords don’t claim all the deductions they are entitled to. Here are the “top 10” deductions on the list:
1. Mortgage interest: This is usually the biggest deduction for landlords. You can deduct mortgage interest on loans to acquire or improve your rental property plus other interest incurred for assets or services used in the rental activity.
2. Depreciation: Most likely, this is the second-biggest deduction item. Recover the cost of the other property through annual depreciation deductions based on the basis in ...(register to read more)