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Rental Properties Yield the Best Tax Benefits By Michelle Gamble
wning any kind of business offers a number of tax benefits, however, renting properties can produce some of the best tax benefits than any other investment. Just the business ownership alone allows property owners to leverage the usual tax deductions and more. If you failed to realize these benefits in 2021, you’re in luck. You can start tracking all of your deductions and prepare for a more fruitful 2022 tax year or you can file an extension on your 2021 taxes and backtrack the required information for filing. If you’ve owned a business before or you’re starting a new rental property business, look to your profit and loss (P&L)
10 MARCH+APRIL 2022 / EBRHA.COM
spreadsheet and the categories to understand what you can write off. Also, make sure you keep careful records, including receipts (electronic or print), invoices, W-9 forms for contractors, and anything else that might be applicable. You want to stay organized and on top of everything so if any questions arise, you can easily pull the information. In the state of California, the top property deductions include: interest, depreciation renting real property, repairs and maintenance, personal property, pass-through tax deductions, travel, home office space and supplies, employee and independent property contractors, insurance, and legal and professional services.
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