5 Great Tax Deductions for Landlords

More and more Americans are choosing to rent rather than return to the housing market. Potential first-time buyers are more likely to wait to buy until they have a large down payment or until they’re able to qualify for an ideal home loan. People who lost their homes in the housing crash are also choosing to rent rather than risk the pain of another foreclosure.

As a property investor, you can take advantage of the increase in renters by investing in a rental property. With a ZINC Financial Buy & Hold Loan, you can buy a rental property and hold it for anywhere from 48 to 60 months. Over the course of your investment, you’ll enjoy regular cash flow from your renters, and when you resell the property, you’ll also gain whatever value the property accrues.

Buy & Hold Loans are an excellent opportunity in the current market as the prices of rental properties are going up across the country with no sign of slowing down. Plus, as a landlord you’ll have a wide variety of tax deductions available to you that will help make your investment even more profitable. Here are just five of the best tax reductions available to landlords:

1. Repairs

Any repairs that you make on a rental property, given that the repairs are necessary and reasonable, are fully deductible in the tax year during which the repairs were made.

2. Local Travel

Any driving that you do as part of your rental activity is tax-deductible. You’ll be able to add up your mileage and deduct your travel expenses for any trips to the rental property for to other locations on rental property business. Long-distance travel associated with your rental activity is also tax-deductible.

3. Employees and Contractors

If you hire someone to manage your rental property or hire contractors to do work on a rental property, those wages can be deducted as a rental business expense.

4. Insurance

Your fire, theft, and flood insurance for your rental property are also tax-deductible. You can deduct the premiums for almost any type of insurance that you place on your rental property including the cost of any health or workers compensation insurance for your rental property employees, if you have any.

5. Legal and professional services

Finally, you can deduct any legal fees related to the operation of your rental property. This includes fees paid to real estate investment advisors and other professionals who might provide you with counsel or services regarding your rental property.

To learn more about the benefits of being a landlord, or to hear about the details of ZINC Financial’s Buy & Hold Loans, call 559.326.2509 today. Remember, through the end of July 2013, you can receive a Buy & Hold Loan with just a 1.0 point fee.

Tagged with: ,
Posted in Buy & Hold Loans, Real Estate Investment Blog