Rental Property Tax Deductions > NetSparsh - Viral Content you Love & Share

Home
>
Tax
>
Rental Property Tax Deductions

Rental Property Tax Deductions

Own residential rental properties? This article discusses how income from those properties impacts your taxes.

What Constitutes Revenue?

Generally, rental income is defined as any revenue you receive from the occupancy or use of residential property. Rent, obviously, is included in that revenue. Many owners are surprised to learn revenue also includes rent advancements, expenses paid by a tenant and any security deposits not returned to the tenant. In fact, revenue can also include amounts paid to cancel a lease, even if you had to sue the defendant to get it.

Yeah, Yeah, But What Can I Deduct?

Tax deductions associated with rental properties are strikingly similar to those found in any business. Technically, you can deduct any expense reasonably necessary to "manage, conserve or maintain" the property. Obvious deductions include mortgage payments, cleaning expenses, insurance premiums, service payments such as landscape maintenance, repairs, maintenance, etc. Overlooked rental property deductions include:

1. Expenses incurred in finding tenants,

2. Commissions paid to third parties that arrange for tenants,

3. Paying your accountant and/or lawyer,

4. Mileage for driving to and from the property [I said, "No more parties!"]

5. Depreciation of the property,

6. Depreciation of items in the property such as washing machines, furniture, etc.

Imaginary Rent Deduction

A few creative property owners have suggested that they should be able to deduct their customary and standard monthly rent if the property is empty. The argument goes, "If the property is empty, I am not making revenue and should be able to deduct the $1,500 that I am missing out on." At first glance, this almost makes sense. Sadly, it doesn't fly from the perspective of the IRS. Since you are not receiving revenues, your total revenues for the year will be reduced by the loss rent. You can't double dip by deducting the $1,500 from the already reduced yearly revenues. The only things you can deduct are the expenses you incur during this period, and only for so long as you are actively trying to rent the place.

Rental properties are a great investment. Even more so if you stay on top of your taxes.

Richard Chapo is CEO of http://www.businesstaxrecovery.com - Obtaining tax refunds for small businesses by finding overlooked tax deductions and credits through a free tax return review.

In The News:

Govt panel gets time till Monday to submit direct tax code report LivemintThe panel, led by CBDT member Akhilesh Ranjan, was earlier required to submit its recommendations on Friday.The new direct tax code will try to simplify tax ...

Will a new direct tax law push up compliance? LivemintNumerous amendments over five decades, as well as the influence of case laws, often made it difficult to interpret the rules.Mint takes a look at what the new ...

FM Nirmala Sitharaman's next stop to assess tax situation to be Varanasi Economic TimesSitharaman is keen on gaining ground-level feedback from both tax officers and taxpayers.

Income Tax Department issues checklist to trace unaccounted demonetisation cash Economic TimesNEW DELHI: In a bid to seize illegal cash, the Income Tax Department has issued a 17-point checklist to tax commissioners across the country to track those ...

Govt forms committee to rationalise ATF taxes Deccan HeraldThe Aviation Ministry has formed a committee to rationalise additional taxes that airlines have to pay while uplifting Air Turbine Fuel (ATF) at airports across India ...

Governments around the world are considering taxing red meat like tobacco in an effort to curb climate change Business InsiderA new report by Fitch Solutions reveals that a "sin tax" currently put on products like sugary drinks and tobacco could soon be applied to meat globally.

Google, Facebook, Twitter may be affected: Framework to tax big tech companies being finalised Economic TimesRevenue threshold of Rs 20 cr & a limit of 500000 users may be set for a non-resident technology firm to pay tax.

How To Reduce Taxes In Retirement ForbesEven though you may be retired, the tax man is ready to take a slice of your Social Security and retirement fund payouts. How can you minimize his cut? Stephen ...

Sajid Javid will 'simplify' the tax system in first Budget BBC NewsChancellor Sajid Javid has said he wants to simplify the tax system ahead of his Budget in the autumn. In his first interview since becoming chancellor, Mr Javid ...

How a small tax-paying elite funds the Indian state LivemintThe move to raise surcharges on the incomes of India's super-rich taxpayers has led to a barrage of criticism from tax experts who have questioned such ...

Finance Ministry to cut tax on prize post PM nudge Economic TimesNEW DELHI: The Finance Ministry has withdrawn the tax exemption it had granted to the cash prize of Rs 1.3 crore received through the Seoul Peace Prize by ...

Hiking income tax appeal limit to reduce litigation, help govt focus on high-value cases: Experts MoneycontrolThe finance ministry's decision to significantly increase the limit for the income tax department to appeal disputes in higher forums will reduce litigation and ...

Send harassment-related cases directly for necessary relief: FM to tax payers BusinessLineTo consider uniform 25 per cent corporate tax rate for all categories after buoyancy in tax collections.

How to get the most from this tax-free source of retirement income CNBCCash value life insurance can complement your retirement plan by acting as a source of tax-free income. Just make sure you don't mismanage your policy.

These cities have the highest sales taxes in the US Fox BusinessThis Midwest hub isn't the only city putting the tax squeeze on residents.

CBDT extends angel tax relief to startups facing tax demands LivemintThe move seeks to ensure that genuine entrepreneurs are not affected by the provision that allows the government to demand tax on share premium, treating it ...

Tax terrorism: Embedded in laws & practice Business StandardRead more about Tax terrorism: Embedded in laws & practice on Business Standard. Blaming tax officials will not help us get to the root of the issue.

When Public Schools Rely on Local Property Taxes: Letters The AtlanticReaders discuss the phenomenon of school districts being isolated from financial resources in their communities.

Sugar concerns: Suntory cites taxes as cautionary factor for South East Asia growth BeverageDaily.comJapanese F&B giant Suntory has recently revealed its performance in the South East Asian to be stronger than other foreign markets, but also expressed caution ...

ITR Filing 2019: 5 incomes you must not miss to report in your Income Tax Return for AY 2019-20 The Financial ExpressIt is advisable to be extra careful while filing income tax return this year as even a small mistake can result in the issue of a notice from the Income Tax ...

We Could Eliminate Extreme Global Poverty If Multinationals Paid Their Taxes TruthoutThe cost of global corporate tax avoidance is $500 billion and poor countries are bearing 40 percent of it.

Gujarat: Businessmen upset as tax amnesty not announced DNA IndiaBusinessmen and tax practitioners in the state are irked as no action has been taken regarding the announcement by Finance Minister Nitin Patel while ...

FM Sitharaman silent on higher taxes for FPIs :sources Business TodayFinance Minister Nirmala Sitharaman gave no indication at a meeting with foreign portfolio investors on Friday that she would withdraw a proposal to raise their ...

As Mamata Slams Durga Puja Tax, Top I-T Officer Says Clamour Based on 'Misleading Facts' News18Kolkata: Income Tax officials have rubbished West Bengal Chief Minister Mamata Banerjee's claim that the I-T department had issued notices to Durga Puja ...

Income tax return filing for AY 2019-20: These details are pre-filled in your ITR form LivemintNEW DELHI: Making it easier to file your income tax returns from this assessment year 2019-20 or financial year 2018-19, the Income Tax department is ...

Nirmala Sitharaman silent on withdrawing higher taxes for foreign investors LivemintNew Delhi: Finance Minister Nirmala Sitharaman gave no indication at a meeting with foreign portfolio investors on Friday that she would withdraw a proposal to ...

All tax letters, notices to carry identification numbers to be verifiable online from Oct 1, 2019 Economic TimesStarting October 1, 2019, all letters and notices from the income tax department will carry a computer-generated Document Identification Number (DIN) which will ...

What is Direct Tax Code? Report likely today LivemintThe new direct tax code will try to make personal income tax rates more 'progressive'.Prime Minister Narendra Modi had last year told tax officials that the old ...

‘Taxes making Indian capital market unattractive globally’ The HinduAs part of their attempts to lower the trading costs in the Indian stock markets - which is among the highest globally - the Association of National Exchanges ...

Angel tax row: Income Tax department gives a breather to start-ups Business StandardRead more about Angel tax row: Income Tax department gives a breather to start-ups on Business Standard. After protests by start-ups, the government had ...

Letters to the Editor: The trickle-down effects of taxing commercial properties Los Angeles TimesTo the editor: The myth promoted by supporters of a split roll to exempt commercial property from Proposition 13 is that the consumer won't pay for this. It will be ...

Freedom from tax burden for angel funds Economic TimesExemption from angel tax even if assessment order was passed before February 19.

California Is Headed Toward a Titanic Battle Over Raising Property Taxes New York MagazineUnless a legislative compromise is worked out, California will host a classic left-versus-right ballot initiative fight in 2020 over a bid to remove commercial ...

Shrinking your tax burden can come with consequences. Here's what to avoid USA TODAYNobody likes to pay more taxes than necessary. But there's also a danger of letting the "tax tail wag the investment dog," to quote a common saying. You don't ...

Analysis: GOP candidates talk tax cuts, but no spending cuts Associated PressBATON ROUGE, La. (AP) — Louisiana's seven-year tax deal, aimed at bringing a cease-fire to the state's tax feuds after seven special legislative sessions ...

Africa's financial inclusion at risk from mobile money taxes Quartz AfricaMuch has been written about the need for African countries to collect more tax revenue from citizens and businesses. The IMF has been imploring sub-Saharan ...

How to File Income Tax Returns aka ITR Online in India Gadgets 360ITR aka income tax returns can be easily filed online for free in India. Here's how you can do that.

Todd and Julie Chrisley Plead Not Guilty to Tax Evasion and Bank Fraud The New York TimesTodd and Julie Chrisley, a wealthy Southern couple who project a public image as a God-loving, straight-talking husband and wife on the reality TV show ...

State and Local Taxes Are Worsening Inequality The New York TimesEconomic inequality is on the rise in Illinois, and the state government is part of the problem. Illinois taxes low-income families at much higher rates than ...

Two billionaires explain why they shouldn't pay more taxes Los Angeles TimesStatements by billionaires explaining why they already pay plenty in taxes and shouldn't have to pay any more have become so much a part of the political ...

Bill de Blasio’s “tax the hell” out of rich people plan, explained Vox.comThe New York City mayor is basically taking a bunch of progressive tax proposals and making them bigger.

Maruti Suzuki seeks tax relief for hybrid, CNG cars LivemintMaruti Suzuki said there is a need to promote hybrid, CNG cars as it will take some time for mass acceptance of EVs considering the high cost of technology.

These Portfolio Tracking Tools Will Also Prepare Your Crypto Taxes Bitcoin NewsTax season is months away, which is why you need to start preparing for it now. Leave everything to the last minute and you'll only end up cursing your.

New CSR levy: A quasi tax Business StandardRead more about New CSR levy: A quasi tax on Business Standard. The approach to push companies, which do not see a business case for CSR, to invest in ...

Tax and office tax The Arunachal Times[ M Panging Pao ]. The common citizens pay taxes to the government for buying every commodity and good from the market. The citizens pay tax for buying ...

FMCG companies seek tax relief on dealer discounts to lift sales Economic TimesFMCG industry has petitioned to remove GST on amount received by dealers as reimbursement against discounts.

GST on electric vehicles, chargers slashed BusinessLineThe Goods & *Service* Tax (GST) Council on Saturday decided to lower the duty on all electric vehicles (EVs) and the charger for such vehicles. This is the ...

For Tax On Durga Puja, Mamata Banerjee Plans Protest Against Centre NDTV NewsBengal Chief Minister Mamata Banerjee is a planning a protest against the tax the BJP-led Central government is trying to impose on Durga Puja committees of ...

Startups get a breather! Tax authority eases norms for pending angel tax assessments Business TodaySeeking to allay concerns over angel tax, the apex body for direct taxes has assured that tax officers won't carry out any verification of issues raised with ...

How to claim tax exemption on long term capital gains? Answers to your personal finance queries The HinduQ. I sold a flat for ₹40 lakh in February 2019. I had bought the property in my name in September 2001 for ₹12 lakh. Now, I want to use this entire money to ...

Home improvements and your taxes AOLAs a homeowner you may be asking, "Do I get a tax break for all the money I've spent fixing up my house?" The answer depends on the kinds of improvements ...

BMC to impose property tax on individual flat owners directly to improve accountability: Report MoneycontrolIn a move aimed at improving accountability, the Brihanmumbai Municipal Corporation (BMC) will tax individual flat owners directly, rather than buildings.

IRS Warnings to Bitcoin Traders Offer Clues to Coming Tax Guidance CoinDeskThe Takeaway: The IRS' recent warning letters to 10,000 traders offer hints at what its forthcoming guidance on crypto taxes might say. While the letters are not ...

IRS Sends Second Round Tax Warnings to Cryptocurrency Investors BloombergSome cryptocurrency investors are receiving a new round of letters from the Internal Revenue *Service* telling them that their federal tax returns don't match the ...

How to show your trading and F&O income in the tax returns? BusinessLineBL Research BureauFor traders, aside from predicting the stock market, reporting income from intra-day trading or Futures & Options (F&O) in the tax ...

Don’t Ban Assault Weapons—Tax Them The AtlanticThe nation is debating what to do about assault-style weapons, what gun-rights advocates like to call modern sporting rifles. Gun-rights champions argue that ...

Textile companies seek tax incentives, DBT for farmers Economic TimesNEW DELHI: Indian textile and clothing industry players say one-third of their production capacity is lying idle due to sluggish exports, poor domestic demand, ...

Julián Castro would boost taxes on wealthy to expand family programs POLITICODemocratic presidential candidate Julián Castro today rolled out a plan to boost taxes on the wealthy and expand or create a host of federal programs for low- ...

Tax rise for high earners may trigger fund flight from India: Bimal Jalan Business StandardBimal Jalan (pictured), former RBI governor, also pitched for a rating upgrade for India due to a number of steps taken by the government ...

Have you filed your income tax return correctly? Find out Economic TimesHere's a short quiz to help you understand if you are on the right track to file your income tax return.

Best of BS Opinion: Tax terrorism, govts financial constraints, and more Business StandardIndustry's demands and the government's response leave a lot of gaps. They seem to diverge at most points even though both acknowledge they complement ...

IT companies fume over double taxation avoidance treaty with Australia Business StandardInformation technology majors have blamed the current Double Taxation Avoidance Treaty (DTAA) with Australia as a major constraint on plans to grow ...

Coercive recovery: Gujarat High Court equates state's tax recovery tactics with 'extortion' DNA IndiaThe Gujarat High Court has lambasted the state government and its tax department for the manner in which it has tried to recover a disputed tax amount of Rs ...

We can’t fund the progressive agenda by taxing the 1% alone Vox.comThe tricky politics of taxing the 1%, the middle class, and everyone in between.

Trump's tax cut isn't giving the US economy the boost it needs CNBCBenefits from what President Trump called "the biggest reform of all time" to the tax code have dwindled to a faint breeze just 20 months after its enactment, ...

You might need to maintain tax returns records for seven years LivemintIn today's digital age, income tax records can be maintained at little or no expense for long periods of time in a digital format. However, it is important to know the ...

Germany weighs taxing meat to help animals and the climate Vox.comHere's one way to discourage people from indulging in a damaging habit: tax the hell out of it. Cigarettes and alcohol are already taxed. In some cities, soda is ...

Trump sues over California law forcing candidates to turn over tax returns CNNPresident Donald Trump sued California Tuesday challenging a state law that requires candidates for president to disclose income tax returns before they can ...

Decoding VG Siddhartha's letter: What's the 'harassment' from tax authorities CCD founder faced? Business TodayIn the last letter to employees, coffee king VG Siddhartha has cited "harassment" at the hands of the tax authorities as one of the reasons for fund crunch in his ...

IRS is going after cryptocurrency users with warning letters about back taxes CNNIRS has begun sending thousands of letters to US cryptocurrency holders warning them they may have incorrectly reported the taxes they owe on their ...

Amazon.com defeats IRS appeal in U.S. tax dispute ReutersAmazon.com Inc on Friday defeated an appeal by the U.S. Internal Revenue *Service* in what the online retailer has called a $1.5 billion dispute over its tax ...

Is it too late for Colorado to capture billions of dollars in oil and gas tax revenues in a permanent fund? The Denver PostCentennial State still has no permanent mineral trust fund; that's OK, say those who see system working as envisioned.

Uber Created a $6.1 Billion Dutch Weapon to Avoid Paying Taxes BloombergUber Technologies Inc., responding to a European crackdown on offshore tax havens, created a $6.1 billion Dutch tax deduction that will help the company ...

E-cigarette industry resisting taxes on par with tobacco BusinessWorld OnlineTHE e-cigarette lobby said its products are safer than traditional products and asked the government not to tax it at the same rate as tobacco-based products.

Income Tax Filing 2019: Check your income tax refund status The Hans IndiaOnce the income tax department process you Income Tax Return (ITR), your bank account will get tax refund directly.

Pending indirect tax appeals down BusinessLineThe pendency of appeal cases related to indirect taxes in the Supreme Court, High Court and CESTAT has reduced 61 per cent to 1.05 lakh in almost 2 years, ...

Three different routes to save tax on long-term capital gains LivemintThere are provisions under different sections of the Income-tax Act that can help you save on LTCG tax.Capital gains exemption will be reversed if you sell the ...

Do I have to pay tax for the capital gains earned by my homemaker wife? Economic TimesMy wife is a homemaker and she has invested Rs 40,000 of her savings in stocks. If she sells these stocks and earns short-term capital gains, will I have to pay ...

10 salary components that can help employees reduce tax burden Economic TimesYour salary structure consists of several components which can help you reduce your tax burden. While some of these components are fully or partially taxable, ...

Modi has a message for 'growth ambassadors', 'tax black sheep': 10 key highlights from PM's interview Economic TimesPrime Minister Narendra Modi, in a free-wheeling interview to ET, said government is willing to go as far as possible to fire up the animal spirits in the economy.

Income tax notices without a unique ID will soon be treated invalid. 5 points LivemintThe new rules for issuance of income tax notices with unique IDs will come into effect from October.At present, some notices are issued manually without any id ...

Steep rise in limits for I-T filing tax appeals Times of IndiaIndia Business News: The threshold limits for filing of appeals by the income tax department with tax tribunals, high courts and the Supreme Court were raised by ...

Colorado severance tax collections expected to drop sharply, even though a bust is nowhere in sight The Denver PostColorado, like other states, taxes the natural resources that are "severed" or removed from the earth. But after two up years, those revenues are expected to drop ...

Do I have to pay capital gains tax if I switch between schemes of same mutual fund? Economic Times"The switching of schemes would be considered as redemption or sale of units of one scheme and purchase of units of the other scheme."

Tax burden of middle and high-income earners to grow considerably in Finland Helsinki TimesTHE TAX BURDEN of Finnish middle and high-income earners will grow considerably as of next year due to an increase in social security contributions, predicts ...

More than super-rich tax, the dull equity market is putting FPIs off BusinessLineAfter all, they continue to invest in debt even when paying the levy on the interest income.

India’s tax administration needs a mindset change: Nirmala Sitharaman Times of IndiaIndia Business News: Amid allegations of “tax terrorism”, finance minister Nirmala Sitharaman has sought a mindset change in tax officials while advocating a ...

5 Common Components Of Salary That Are Exempt From Income Tax GoodreturnsWhen you receive your salary payslip, you may have observed that your salary has a break-up of different components. These components include allowances ...

Dividend income, partnership firms two ways to reduce income tax liability Business StandardMumbai-based M K Rajendran (name changed on request), director at a leading private bank, has been calling his chartered accountant regularly since July 5 ...

Interest from bank FDs, savings accounts: Income tax rules, how to fill in ITRs LivemintMost of us earn some interest from deposits in banks or post offices. From Assessment Year 2019-20, tax-payers are required to submit a break-up of interest ...

Greece’s new finance minister vows to prioritise tax reforms Financial TimesGreece's new finance minister has said that implementing sweeping tax reforms will be his “key priority” as his country seeks to boost growth and rebuild ...

MCI asked to withdraw 200% hike in property tax The News InternationalIslamabad : The Islamabad Chamber of Commerce & Industry has called upon the Metropolitan Corporation Islamabad to withdraw the over 200 per cent hike in ...

Google, Facebook, Amazon to testify in US against French digital tax CNBCGoogle, Facebook and Amazon are among the companies that will testify Monday at a U.S. government hearing on the French government's digital services tax.

Alternate dispute resolution mechanism expected in new tax code Business TodayThe new Direct Tax Code to be submitted on August 16 by the committee headed by Principal Chief Commissioner of Income Tax Akhilesh Ranjan will have, ...

Letters to the Editor: Defending California's demand for President Trump's tax returns Los Angeles TimesTo the editor: Politics surely played the role in demanding tax returns for President Trump for California's March 3, 2020, primary election ballot. However ...

GOP Sen. Rick Scott: Americans should get tax cuts in return for tariffs paid on Chinese goods CNBC"Anything we raise in tariffs, we should give back to the rank and public in tax reductions," the Florida Republican says.

Mauritius Leaks exposes tiny tax haven's role in vast offshore system International Consortium of Investigative JournalistsBased on 200000 files, this new ICIJ investigation uncovers a sophisticated system that diverts tax revenue from poor nations back to the wealthy elite.

New income tax refund rules: Linking bank account with PAN card is mandatory LivemintTaxpayers whose bank accounts are not linked with PAN cards are likely to face trouble in getting income tax refunds.Linking your bank account with PAN is ...

Trump Sues House Panel, New York to Protect Tax Returns TIMEPresident Trump on Tuesday sued a House committee and New York officials to prevent his state tax returns from being turned over.

‘An elitist project for the upper middle-class!’ - Campaigner takes aim at sugar ‘sin tax' ExpressSO CALLED 'sin taxes' on sugar, alcohol and tobacco are “an elitist project” led by the “upper middle-classes” according to a prominent individual liberty ...

Rental Property Tax Deductions

Tax Tax