{"id":21496,"date":"2022-04-06T14:50:17","date_gmt":"2022-04-06T18:50:17","guid":{"rendered":"https:\/\/lakelandgazette.info\/news\/?p=21496"},"modified":"2022-04-06T14:50:25","modified_gmt":"2022-04-06T18:50:25","slug":"investment-property-owners-tax-deductions-you-should-know","status":"publish","type":"post","link":"https:\/\/lakelandgazette.info\/news\/2022\/04\/06\/investment-property-owners-tax-deductions-you-should-know\/","title":{"rendered":"Investment Property Owners: Tax Deductions You Should Know"},"content":{"rendered":"\n

If you own a rental property and aren\u2019t sure how that affects your taxes, then this article is for you. The Tax and Job Act of 2017 introduced many changes for property owners.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Read more to learn how these changes benefit you.<\/p>\n\n\n\n

Tax deductions you should know<\/h1>\n\n\n\n

According to the eye of the IRS, rental properties depreciate over time. For landlords, that\u2019s a tax break. This is typically a break that is spread out over several years.<\/p>\n\n\n\n

Is this your first time owning a rental property? There\u2019s a big \u201cbonus\u201d deduction in place for you.<\/p>\n\n\n\n

This depreciation deduction is typically maxed out at 50% of the property\u2019s value. But under the tax act, that deduction doubled!<\/p>\n\n\n\n

This bonus deduction would be netted against revenue. Which, in most cases, would make rental income show a loss. So, you wouldn\u2019t be paying taxes on your rental income.<\/p>\n\n\n\n

However, how they apply to each owner can vary, and your property must qualify. Seek out a well-versed professional in real estate to help you out.<\/p>\n\n\n\n

Tax-free rental revenue<\/h1>\n\n\n\n

Yes, rental income is taxed, however, the tax act offers landlords a shelter of up to 20% tax-free rental income.<\/p>\n\n\n\n

So, how does this work? Section 199A<\/a> of the IRS code provides taxpayers with a deduction for qualified business income. And the IRS considers a real estate enterprise as a business.<\/p>\n\n\n\n

This is extremely helpful for many landlords.<\/p>\n\n\n\n

Home improvement deductions<\/h1>\n\n\n\n

What\u2019s a repair versus an improvement?<\/p>\n\n\n\n

In the past, landlords could deduct repairs to a rental property immediately. But home improvements were depreciated over time.<\/p>\n\n\n\n

Under section 179<\/a>, the IRS increased the immediate deduction threshold for home improvements.<\/p>\n\n\n\n

This threshold was increased to $2,500 per item. This means the money spent on improvements under $2,500 can be deducted immediately.<\/p>\n\n\n\n

Tax act downfall<\/h1>\n\n\n\n

With benefits always come downfalls. One of these relates to losses on the property.<\/p>\n\n\n\n

A loss occurs when a property\u2019s expenses total more than rental income. Those losses cap at $250,000 for a single person and $500,000 for a married couple.<\/p>\n\n\n\n

However, since these limits are pretty high, this doesn\u2019t affect most rental-property owners.<\/p>\n\n\n\n

Seek a property manager<\/h1>\n\n\n\n

When it comes to investment properties, things can get disorganized fast. Good record-keeping is essential for rental owners.<\/p>\n\n\n\n

It\u2019s ideal to keep sales closing disclosures, purchase closing disclosures, refinancing documents, and receipts for anything to do with the home for at least three years.<\/p>\n\n\n\n

While it\u2019s your responsibility to hold onto the sales and purchasing documents, a property manager<\/a> could help keep a record of all other improvements, rental income, and much more.<\/p>\n\n\n\n

A property manager will help you protect your assets. They can maximize your revenue by keeping your property leases and expenses low.<\/p>\n\n\n\n

If you own a rental property or are looking to invest, consult with a professional to manage your property and help keep things organized for when tax season comes around.<\/p>\n\n\n\n

SOURCE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

If you own a rental property and aren\u2019t sure how that affects your taxes, then this article is for you. The Tax and Job Act of 2017 introduced many changes… <\/p>\n","protected":false},"author":1,"featured_media":21497,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"0","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"","_seopress_redirections_param":"","_seopress_redirections_type":0,"_seopress_analysis_target_kw":"","inline_featured_image":false,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"wpai_generated_summary":"","footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"dois","default_image_id":71799,"font":"","enabled":false},"version":2},"_wpas_customize_per_network":false},"categories":[2117],"tags":[2662],"class_list":["post-21496","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-people-talk-real-estate","tag-investment-property-owners-tax-deductions-you-should-know"],"jetpack_publicize_connections":[],"_links":{"self":[{"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/posts\/21496","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/comments?post=21496"}],"version-history":[{"count":0,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/posts\/21496\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/media\/21497"}],"wp:attachment":[{"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/media?parent=21496"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/categories?post=21496"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lakelandgazette.info\/news\/wp-json\/wp\/v2\/tags?post=21496"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}