Tax Benefits for Landlords

The most outstanding among its benefits of being a Landlord and the one which makes the profession attractive to many is the fact that landlords get tremendous tax benefits:

• Landlords get a portion of the cost of their rental property back through depreciation, which is spread out or amortized over a number of years. 
• The expenses landlords incur when making necessary repairs or needed improvement to their rental property are deductible in full during the year in which they occurred.  Such expenses may include costs of repainting (indoors and/or outdoors), replacing flooring, fixing a leaking roof, unclogging sewer lines, replacing damaged doors or broken windows and so on. 
• Landlords pay interest on mortgage loans for the rental property, on loans taken for paying the costs of improvements to the rental property, and on open balances of credit cards that are used for maintaining the rental property.  The expenses of these interests (regardless of their rates) are all deductible from the landlords’ total income.  So, his or her income taxes are paid at lower rates.  Since expenses for interests are often extremely high, deductions for interest are also among the highest deduction landlords can claim.  
• Landlords are permitted to deduct their expenses for automotive traveling on any business related to their rental property.  These expenses refer to those sustained during driving to and from the location — gas as well as the vehicle’s upkeep and repair.  Under certain circumstances; car rentals, airfare and expenses on public transportation (buses, trains, trolleys, subways, ferries, etc.) may be considered legitimate business deductions for tax purposes.

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