The end of the year can bring about many obligations – both personal and business. For starters, the holidays will keep most anyone busy. And, if you own rental real estate, this time of year can also signal the deadline for many important tax deductions.
If you’re like many seasoned investment property owners, purchasing real estate isn’t just for the sole purpose of generating income – although that’s definitely a nice perk! But this type of investing, more so than many others, can also allow you to reap some valuable tax benefits.
So, how can you help yourself with maximizing some key tax advantages before the end of 2017?
Here are just a few tips:
First, if you’re planning to do any rehab and / or repairs on your properties, it can be extremely beneficial to do so now, rather than waiting until after the first of the year. That way, the cost of the materials and the labor will be deductible on this year’s taxes. (In the case of repairs, be careful that you don’t get tripped up with improvements – such as putting on a new roof, which has to be depreciated over several years – as versus true repairs).
Depending on how your overall tax situation looks, you might also want to consider having your tenant(s) delay making their rent payments until after January 1st, as versus paying early. While it’s always nice to get a rent check early, waiting (at least just at this time of year) can allow you to place the income on next year’s tax return and not this year’s.
If your time is crunched and managing your rental properties would be better accomplished with a property manager, hiring a professional property management team can offer several benefits.
For instance, it will allow you to free up more time to spend doing other activities. And also, you guessed it, you can deduct the property management fees that you pay. Want more information on the many benefits of working with a property manager in Orlando or the surrounding Central Florida area? Give us a call today.