5 tax deductions for Florida landlords

The first thing most people think of when they hear the words "real estate investing" is buying cheap houses, fixing them up and reselling them at market prices. However, if the current housing market isn’t really conducive to home sales, then it is important for an investor to be able to adapt.

A lot of investors dislike the thought of being a landlord, saying that there are just too many headaches to deal with. Luckily, there are a lot of benefits of renting out properties as well, including tax deductions. The following list details five of the available tax deductions for landlords.

  1. Tax Deductible Property Repairs – If you have ever rented a home, you know that there is a lot that can go wrong. Anything that needs fixing on a rental property, such as roof repairs, tile replacements, or any other necessary repairs are tax deductible. This makes it easier to deal with costly repairs throughout the year.

  2. Insurance Premiums – Insurance is a requirement; it’s nice that for investors who are renting out the property, the premiums can be deducted from the income at the end of the year.

  3. Property Depreciation – Property values of real estate fluctuate, but generally houses appreciate rather than depreciate. This makes the fact that you deduct the depreciation of the property over time on your taxes.

  4. Tax Deductible Interest – Interest that investors pay on mortgages and other loans used for properties is tax deductible. Not only that, but if you have a credit card used solely for spending on repairs, renovations, or anything on the property, the interest is deductible on your taxes as well.

  5. Cost of Services – Perhaps one of the biggest reasons that many investors don’t want to be landlords is because they would have to deal with tenants. Hiring a project manager is the perfect way to deal with that aversion. The costs of these and other services such as lawyers and accountants are tax deductible.

These are only five of the top tax deductions available to landlords who rent out their properties. There are so many reasons to rent out properties instead of selling them: residual, steady monthly income, as well as the extra tax benefits. Many of these tax deductions are not available for the everyday home buyer. Enjoy the benefits of being a landlord, and remember not to put all of your eggs in one basket.


About the author:

Jennifer Hill and the agents at Realnet of Tampa Bay are experts at finding the best investment properties or sale. Don't fall for the trap of buying investment properties without researching a property thoroughly.

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