As April 15th looms closer, landlords may find that the new tax legislation could actually be advantageous in a number of different areas. For example, while the new laws limit the amount of mortgage interest deduction you can take, up to the first $750,000 of debt, this rule does not apply to property that generates rental income. In fact, if you have a mortgage on your investment property(ies), then there is no upper limit regarding the tax-deductible interest expense.
There are several other areas where rental property owners may also come out ahead with the new tax laws, including:
- Depreciation – The depreciation on your rental property is still in-tact – and you are allowed to continue depreciating residential properties for 27 ½ years.
- Property Tax – Property tax for investment real estate owners is considered to be a business expense, and is able to be deducted on Schedule E. (This deduction is, however, capped at $10,000 for home owners).
- Repairs and Maintenance – As long as the cost of maintenance and repairs on your investment property are deemed “reasonable and necessary,” these are also a deductible expense.
If you’d like to continue receiving income from your rental properties, but not have to deal with managing tenants, collecting rent, and taking out time to fix leaky toilets or broken appliances, it may be time to consider hiring a property manager. That’s where CFL Property Management can help.
In addition to being experienced professionals in the management of residential rental property in Orlando and the surrounding Central Florida, we also provide additional services like monthly easy-to-read financial statements and direct deposit. Plus, because the fees charged by a property manager are considered a business expense, these can also be tax-deductible for you.
Want to learn more about how an Orlando property management company can work for you? Just contact us for more details.
