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Can I Claim It? Income Tax Deduction Information for Owasso Rental Property Owners

Tax deduction written on a piece of paper. There are various key tax deductions for rental property owners that you should be aware of to lower your taxable income and enhance your profitability. In general, tax deductions are claimed for the tax year in which the expenses were incurred. It is vital to get the counsel of a tax professional or accountant to ensure that you grasp the particular rules and conditions for each deduction and that you maximize your benefits while remaining within the legal framework.

Nondeductible expenses

Alternatively, non-allowable tax deductions are costs that cannot be deducted to lower taxable income. Personal expenses unrelated to the rental property include, for example, personal travels, clothing, or groceries; as well as:

  1. Monthly mortgage payments. While mortgage interest and property taxes are both deductible, loan principal payments are not.
  2. Even when the entertainment is connected to your business, entertainment costs are not deductible. On the other hand, business dinners are still tax-deductible, but the rules have changed because of the new rule.
  3. Business gifts valued over $25 and given to any one person during the tax year are not deductible.
  4. Club dues, such as subscriptions to gyms, country clubs, or other clubs, are not deductible even if you are entertaining for business purposes.
  5. Capital improvement Costs like putting in new windows or a new roof on your rented house must be depreciated, not deducted.
  6. Other taxes, including state income taxes and local sales tax. These should be included in your personal income tax return.
  7. Fines and penalties, such as those levied by the IRS for underpayment of a prior year’s taxes and late payment fines.
  8. Political contributions, including anything spent on lobbying costs or campaign events.
  9. Home office space unless it is used exclusively for business purposes. Even having a family computer in the room may mean that your home office deduction is disallowed.

Income tax deductions are ultimately complex and may be difficult to completely comprehend. Even though a tax professional is the best person to help you with tax problems or questions, there are things you can do to make the most of your time and money. When you hire Real Property Management Abound, we’ll help you navigate the confusing world of tax benefits, so you’ll never have to wonder if you’re keeping track of the right things.

Our team of Owasso property managers can give you the help you need to make sure you get every possible tax deduction and stay away from things that the IRS won’t let you claim. With our help, you can be sure that you’re setting yourself up for success during tax time and all year long. For more information, you can email us or call us at 918-984-4433.

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