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:

India finds a new way to tax Google, Facebook Economic TimesNew Delhi: India may be pushing Internet firms such as Facebook and Google to store data locally not just to safeguard critical data of its citizens but also to ...

"Google, Apple, Facebook, Amazon" Tax In France To Regulate Tech Giants NDTV NewsFrance will introduce its own tax on large internet and technology companies from January 1, Finance Minister Bruno Le Maire said today amid difficulties in ...

These Are the 2019 Tax Brackets LifehackerThe IRS has announced the tax rates and income brackets for 2019, and besides slight adjustments in the income ranges for inflation, they look the same as this ...

China’s rich rush to shelter $1 trillion from new taxes Economic TimesWealthy Chinese are rushing to shelter assets and income in overseas trusts before new tax rules go into effect next month.

Rockwool case could set new state precedent on taxes WV NewsRANSON — The outcome of a legal battle over an insulation production plant in the Eastern Panhandle could set a new precedent regarding the state's payment ...

GST Council may look to rationalise 28% slab; taxes on cement may be cut Economic TimesThe GST Council is likely to rationalise the 28 per cent slab by cutting tax rates on construction items, like cement, in its meeting next week. The council, chaired ...

Court order trips tax hounds in hunt for secret foreign assets Economic TimesMany people having money in tax-haven banks, overseas properties and interests in offshore trusts may escape the wrath of the Indian tax office. According to a ...

7 lesser-known investments, expenditures eligible for tax breaks Economic TimesET Wealth decodes some of the lesser-known investments and expenditures that are eligible for tax breaks. 1. Deduction for pre-nursery. Claim relief on ...

Tax on your gold and real estate investments LivemintHere is a look at the taxes that apply to short-term and long-term gains from these two asset classes.

Investing solely to avoid taxes is a bad, wasteful strategy: View Economic TimesWhile many opt for creative accounting of expenses and tax deductibles, these practices also needlessly complicate matters for inheritors.

How to avoid tax saving traps: Things to know Times of IndiaIndia Business News: At first glance, a plan from a large life insurance company certainly appears lucrative. But the reality dawns once you analyse the numbers ...

India's tryst with taxes Forbes IndiaWhile the rich pay a bulk of the income tax paid by individuals in India, many wealthy people do not pay their share of taxes.

The case for raising the alcohol tax Vox.comA higher alcohol tax would save lives, prevent crime, and mostly affect excessive drinkers.

Shakira faces tax fraud in a country she does not reside in KTRK-TVShakira is facing charges of tax fraud in a country she does not reside in. Spanish prosecutors say the Colombian singer has not paid the country income tax ...

Best ELSS fund to save taxes this financial year Economic TimesIf you have any mutual fund queries, message on ET Mutual Funds on Facebook. We will get it answered by our panel of experts.

EDMC proposes two new taxes, education cess in 2019-20 budget Times of IndiaNew Delhi, Dec 10 () Cash-strapped East Delhi Municipal Corporation (EDMC) on Monday proposed two new taxes and an education cess in its budget for ...

After President Trump Signed the 'Last Minute Tax Law,' Married Couples Are Rushing to Get Divorced By December 31. (Why Didn't Anyone Predict This?) Inc.You might remember that a year ago, on the Friday before Christmas (Christmas was on a Monday last year), President Trump signed a last-minute tax law--in ...

Divorcees can save on taxes — if they take this one step CNBCIf you're planning on shedding weight in 2019 — in the form of your soon-to-be ex — be sure you understand this tax-planning benefit. Why the "head of ...

Airtel Niger faces shutdown over non-payment of taxes Business TodayThe General Tax Directorate of Niger ordered the closure of the offices of Airtel Niger, seeking tax amounts that have been disputed by Airtel.

Income Tax Return (ITR) filing: This State Bank of India scheme helps you save on taxes; gives 7.35 pct int... Zee BusinessIncome Tax Return (ITR) filing: The State Bank of India also offers an investment tool that allows you to claim an exemption in tax. The investment attracts an ...

Feroce lands at No. 2 on annual list of tax delinquents Turn to 10Rhode Island tax officials have released the list of their top 100 tax delinquents who owe the state a total of $43 million in taxes. The practice of the state Division ...

Trumps used rent-control laws to skirt taxes and build an empire Washington ExaminerJust as regulation serves as a sort of a subsidy for bureaucracy, ensuring that experts are needed to meet out the rules appropriately, it also presents an ...

Taxmen catch buffalo meat, slap Rs 25 lakh in taxes, penalty Economic TimesThe Commercial Taxes department officials in Belagavi have collected Rs 25 lakh in GST levies as well as penalty after intercepting four trucks mounted with ...

Bitcoin Will Be Worthless Until You Can Pay Your Taxes With It BloombergWhen faced with the charge that cryptocurrencies have no inherent value, believers often counter that paper money doesn't either. Such a defense is intuitive, ...

EDMC proposes 2 new taxes and an education cess in its 2019-20 budget Business TodayEDMC Commissioner Puneet Kumar Goel made the announcement of new taxes while presenting the budget at the civic agency's Patparganj headquarters.

Fox River Grove cutting property taxes 7 percent in 2019 Chicago Daily HeraldFox River Grove property owners will pay roughly 7 percent less in taxes to the village in 2019.

The Tax Cuts And Jobs Act: 3 Changes You Should Know ForbesTax season is coming more quickly than you might think — has the Tax Cuts and Jobs Act affected you? Read here to discover more!

6 last-minute tips that will trim your 2018 tax bill CNBCBefore you break out the Champagne, take a look at these six strategies that could help you trim your 2018 tax bill — as long as you act before Dec. 31.

Withdrawals Under National Pension Scheme To Be Tax-Free BloombergQuintWithdrawals made by subscribers of the National Pension Scheme at the time of retirement will be made tax free.

Mounting rents and city taxes have downtown St. John's businesses scrambling to overcome slump CBC.caSome businesses are imploring residents to shop local this holiday season.

California’s New Tax on Texting Wall Street JournalCalifornia brings to mind the Beatles' famous song “Taxman.” The state already has the highest income-tax rate in the country on top of punishing sales and gas ...

7 year-end tax tips to boost your refund CNBCThe new tax law has put a whole new spin on year-end tax planning, though it hasn't eliminated the need to do it altogether. "The tricks we had in our back ...

Yellow vest protests spread to Canada, criticizing illegal immigration, taxes CTV NewsOriginally starting in France, yellow vest protests have moved to Canada. Many were held Saturday across the country criticizing the tax and immigration policies ...

Six tax deductions you'll lose on your 2018 return CNBCIf you were hoarding receipts in a shoebox with the hope of claiming a big break on your 2018 taxes, prepare to be disappointed. That's because the Tax Cuts ...

Companies who donated to Republicans made tax cuts look good for workers VoxRight after the Republican tax cut bill passed a year ago, corporations made a slew of announcements pegged to the legislation, including some that gave ...

Pay Your Taxes In Bitcoin, Trigger Tax Losses On Price Drop Too ForbesWith Bitcoin and other crypto prices down again, many holders don't want to sell. But if you owe taxes, how about paying them in Bitcoin? Selling now may ...

Good news! GST led to household savings as tax rates came down The Financial ExpressThe government rolled out the Goods and Services Tax (GST) on July 1, 2017, amalgamating 17 different central and state taxes including excise duty and sales ...

10 things you probably didn't know you could deduct on your taxes Business InsiderWhat deductions are you missing when filing your tax return? Here are 10 that are often overlooked ahead of tax day 2019.

Avoidance of double taxation treaty between India, HKSAR comes into effect Economic TimesThe agreement between India and the Hong Kong Special Administrative Region (HKSAR) of People's Republic of China for the Avoidance of Double Taxation ...

A tax ruling just opened the Pandora's box for India's back offices Economic TimesServices such as accounting and legal offered by Indian offices to MNCs are taxable at 18%, AAR has ruled.

Beware! These tax-saving investment mistakes can sink your finances The Financial ExpressIt's said, if you fail to plan, it means you plan to fail. So, it's better to plan before you make your tax-saving investments, so that you may reach your financial goal ...

Shakira charged with tax evasion in Spain The GuardianSpanish prosecutors have charged the Colombian singer and philanthropist Shakira with tax evasion, alleging she avoided €14.5m (£13m) in taxes by claiming ...

Tax on free services: PMO set to wade into ₹40,000 cr spat between banks, revenue dept BusinessLineMumbai, November 25. With banks staring at a massive tax outgo of ₹40,000 crore on free services provided to customers to maintain a minimum balance, and ...

No tax on up to Rs 50,000 interest for senior citizens Times of IndiaIndia Business News: In a notification issued on December 6, it has clarified that no TDS has to be deducted under section 194-A of the Income Tax (I-T) Act in ...

US State of Ohio Accepts Bitcoin for 23 Types of Taxes Bitcoin NewsThe U.S. state of Ohio has set up a cryptocurrency payment portal and reportedly starts accepting payments in bitcoin for 23 types of taxes this week. “Ohio has ...

Rs 262 crore cyber-tax fraud unearthed in Delhi Times of IndiaNEW DELHI: The Delhi government's Trade and Taxes Department has unearthed a cyber-tax fraud totalling Rs 262 crore, happening since 2013 with over 8,.

Hospitals get tax notices for implants Economic TimesIf GST is applied on medicines and implants used on patients instead of a composite tax rate, then this may result in a huge impact and hospitals will have to ...

"Positive Impact Of Notesban": High Growth Rate Highlight Of Tax Report NDTVThe Income Tax Department has mopped up over half the kitty of the targeted direct tax revenue for this fiscal -- at more than Rs 6.63 lakh crore -- riding at a ...

HC dismisses Vodafone plea for tax refund of over Rs 4,759 crore ETTelecom.comThe bench declined to grant any relief to the company, saying there was merit in the tax department's argument.

Text, Californians, text: State commission won't pursue tax on text messaging USA TODAYCalifornians worried that their text messages might soon be taxed can rejoice. The proposal has been pulled.

Panel to overhaul, simplify Direct Tax laws to submit report by Feb 28 Economic TimesThe finance ministry Monday said the task force to draft a new direct tax law to replace the existing Income Tax Act will submit its report by February 28.

Cell Phone Taxes and Fees in 2018 Tax FoundationA typical American household with four wireless phones paying $100 per month for taxable wireless *service* can expect to pay about $229 per year in wireless ...

Trump’s tax law sparks year-end rush to finalize divorces | TheHill The HillDivorcing couples are scrambling to finalize their cases before the end of the year as a result of President Trump's tax law.

A holy mess: Churches, other nonprofits confront parking tax POLITICOThe parking benefits that churches, synagogues, hospitals, colleges and other nonprofits offer their employees are suddenly taxable.

Revealed! Income Tax Return of BJP, BSP, NCP, Trinamool Congress, CPM; Surprising numbers here Zee BusinessIncome Tax Return of Political Parties in India: The Association for Democratic Reforms has analysed the total income and expenditure incurred by the National ...

India-China amends double taxation avoidance treaty Economic TimesBesides minimum standards, the Protocol brings in changes as per BEPS Action reports as agreed upon by the two sides, the ministry added.

Labour is plotting extra £12,000 stealth tax on every lorry in Britain Daily MailClive Lewis, a key lieutenant in the Shadow Treasury team, is pushing to dramatically put up lorry taxes by up to £12096 a year per truck.

Democrats will push to restore California tax deductions McClatchy Washington BureauDemocrats from California and other high-tax states will push to restore the state and local tax deduction when the party takes control of the House in 2019.

Climate change: Protecting the poor from green taxes BBC NewsAs President Macron caved into the yellow vest fuel tax protests, President Trump was triumphant. The French humiliation showed people rejected the sort of ...

France’s protesters are part of a global backlash against climate-change taxes Washington PostThe single most effective weapon in the fight against climate change is the tax code — imposing costs on those who emit greenhouse gases, economists say.

How to save tax on capital gains arising from selling a house Economic TimesMy 71-year-old father had purchased a house in 1972 for Rs 1,000. Now he is planning to sell it for Rs 28 lakh. What will be his capital gains tax liability?

Lebanon underpaid school districts $3.1 million in tax money Dayton Daily NewsThe City of Lebanon underpaid two local school districts $3.1 million in property taxes collected through taxing districts established to help pay for roads and ...

Are the French hit especially hard by fuel taxes? The GuardianA planned rise sparked the gilets jaunes protest – here's how their fuel costs compare with the rest of Europe.

All you need to know about gift tax this wedding season Times NowGifting a valuable asset during a wedding is quite common in India. However, it is crucial to know that these gifts attract a gift tax as per the Income Tax Act.

Thousands in France protesting gas taxes and President Macron Vox.comThousands of protesters in Paris and elsewhere in France demonstrate against rising fuel prices and Macron's economic policies.

Internet sales tax collection laws gradually taking effect - Hartford Courant Hartford CourantAs 2019 approaches, many online retailers are either collecting or preparing to collect sales tax from out-of-state-customers for the first time.

'Yellow Vests': Why France Is Protesting New Gas Taxes CityLabThe rapidly developing “Yellow Vest” movement took over streets and highways to oppose rising gas and diesel taxes. It might also be a proxy for frustrations ...

Summer spendathon on cards as tax windfall delivers to Morrison The Sydney Morning HeraldScott Morrison is preparing for a $10 billion summer spendathon to woo back voters with stronger commodity prices and more taxes from the nation's businesses ...

Vancouver city council asks province to rescind real estate tax CBC.caVancouver Mayor Kennedy Stewart has sent a letter to Premier John Horgan asking the province to rescind a new tax on real estate even though Stewart ...

Central govt staff can now save tax via NPS with only 3-year lock-in Economic TimesSubstantially reducing the lock in for availing section 80C tax benefit on NPS investment the government has brought it on par with one of the most popular tax ...

‘Historic’ Tax Refunds Will Extend Retail Boom Into 2019 BloombergPolling shows that many Americans don't like the landmark tax overhaul passed a year ago, but maybe that's because they haven't received a bulk of the ...

Direct tax collections rise 15.7% YoY for April-November period Economic TimesThe direct tax collections are up 15.7% for the April-November period from corresponding period a year ago, data released by the government on Monday ...

'No tax benefit on house sale if new flat is in wife's name' Times of IndiaIndia Business News: The Income-Tax Appellate Tribunal (ITAT)'s Mumbai bench recently denied a taxpayer I-T benefits available when long-term capital gains ...

How senior citizens can avail tax break on interest income under Sec 80TTB Economic TimesBudget 2018 introduced a new section, 80TTB, under the Income Tax Act which allows senior citizens to claim tax break on specified interest income up to Rs ...

Opinion: Is Another Tax Hike Coming? BethesdaMagazine.comCountless times during the campaign, County Executive Marc Elrich said he did not want to raise taxes. He flatly said at a candidate forum, “I'm not raising taxes ...

Good jump! Corporate tax collection up 18 per cent in April-November, fastest in five years The Financial ExpressCorporate tax collection grew an impressive 18.3% in April-November of FY19, the fastest pace in at least the last five years.

Five ways to e-verify your ITR Economic TimesFind out the various easy, secure and quick ways to verify your income tax returns (ITR).

FBI Raids Trump's Former Chicago Tax Attorney Who Saved the President $14 Million in Property Taxes FortuneThe FBI raided the offices of Trump's former Chicago tax attorney, who obtained millions in assessment relief for the Trump Organization.

Tax savers start hunting for best ELSS ahead of tax-saving season Economic TimesTraditionally, January to March is known as the tax-saving season. However, the season has already started in December ahead of the tax season next year.

It May Be Time to Stop Itemizing Your Tax Deductions NerdWalletThe standard deduction nearly doubled for 2018, leaving many taxpayers wondering whether itemizing tax returns is worth the effort anymore. Tax pros share ...

As the Trumps Dodged Taxes, Their Tenants Paid a Price The New York TimesThey were collateral damage as Donald J. Trump and his siblings dodged inheritance taxes and gained control of their father's fortune: thousands of renters in ...

California mulls tax on text messaging, may lead to showdown with federal regulators Fox NewsA California regulator's plan to tax texts in order to fund cellphones for the poor hit a snag Wednesday after a Federal Communications Commission ruled text ...

How Trump's (Private) Tax Returns Could Become Public: QuickTake BloombergThough candidates for the U.S. presidency aren't required by law to show voters their tax returns, they almost always do so as a gesture of personal disclosure.

Top five tax-saving bank FD rates Economic TimesTax-saving fixed deposits (FD) are one of the most popular investment avenues in the section 80C basket of financial instruments. To save tax, many people use ...

Income Tax Return (ITR) filing: No need to generate slip! From bank ATM to Aadhaar, 5 steps to tax redempti... Zee BusinessIncome tax return (ITR) filing: Taxes form a major part of the outgo for any salaried employee. However, not everyone has to pay taxes and file for Income Tax ...

The Golden Age of Rich People Not Paying Their Taxes The AtlanticAn eight-year campaign to slash the IRS's budget has left the agency understaffed, hamstrung, and operating with archaic equipment. The result: a ...

Scotland freezes threshold for higher-rate income tax The GuardianScottish finance secretary to freeze threshold for higher-rate income tax at £43431 to help finance cuts for least well-off.

Tax queries: Gifts received from relatives are not taxable Economic TimesDilip Lakhani, Senior Chartered Accountant, answers queries from our readers on income tax and other levies. Can charges for services (such as courier, ...

How long do you have to keep your income tax related documents? Economic TimesDocuments such as rent receipts, section 80C tax saving documents etc. which prove the claims made by you in your tax-return are advised to be kept safely.

How to avoid tax saving traps set by unscrupulous wealth managers, bank officials Economic TimesAn average investor neither has the time or the inclination to go into the finer details of the policy.

Which states have the lowest sales tax, ranked Business InsiderDepending on where you live, state and local sales taxes will increase how much money you're paying at the register.

Income Tax Return Filing: Missed deadline or furnished wrong information? You may face fine, jail term Zee BusinessIncome Tax Return: Filing Income Tax Return may be a cumbersome process and it is quite possible that many of you may have paid late fine after missing the ...

Taxpayers Alert! Have you filed your income tax? Remember these deadline nears; know from TDS, TCS to chall... Zee BusinessAlthough one would not like to share their income and income from other sources with authorities, however, it comes as a helping hand for government in ...

Delhi HC dismisses Vodafone plea for tax refund of over Rs 4,759 crore Moneycontrol.comThe court said the department should have the right to adjust the demands against the refunds that may arise but have not yet been determined due to the ...

The Taxation of Benefits Puts Social Security Between a Rock and a Hard Place Yahoo! Finance NewsThere's little argument that Social Security is a financial pillar for most seniors. Each month, more than 43 million retired workers receive a benefit check, with ...

Why you mustn’t wait for last-minute tax planning! Here are some investment options to look at The Financial ExpressLast-minute investments go haywire more often than not, as your decisions are solely driven by tax-saving motives, overlooking factors that are essential to ...

All the Taxes in France Wall Street JournalEven before the fuel tax, France had the highest burden in the West.

How single folks should handle estate-tax planning under the new tax law MarketWatchThe hugely increased estate and gift tax exemption is indeed a tax cut for the rich.

Tax day 2019: How to lower your tax bill with the Saver's Credit Business InsiderThe Saver's Credit enables low- to moderate-income taxpayers saving for retirement to reduce their tax bill by up to $2000.

Feds Collect Record Taxes Through November; Still Run $305.4B Deficit CNSNews.com(CNSNews.com) - The federal government collected record total tax revenues of $458,653,000,000 in October and November, the first two months of fiscal 2019, ...

Rental Property Tax Deductions

Tax Tax