Taxes: What Can You Deduct?
Mortgage Is Not A Dirty Work With Rental Property
With careful record keeping, you will save taxes and increase your cash flow. It will keep more revenue in your pocket. Owning rental property offers extensive deductions. There are two types: current and capital expenses. The first must be deducted from your rental income in the year incurred. They include advertising, insurance premiums, mortgage interest, property taxes, administrative costs and fees, and ongoing maintenance. The list is extensive. The second, capital expenses, includes work that adds value to your asset. Such as renovations, appliances and furniture used for your rental. These can be depreciated over several years. Your FORTAX Financial Advisor can guide you about doing this for maximum tax benefits. If your rental is within your principal residence, you can claim a percentage of the overall costs. As long as you don’t incur a loss; but you can zero your income as much as possible by keeping good records.