The following list includes those items that an owner may use as deductions for tax purposes when renting out their home or apartment complex:

1. Depreciation on the dwelling.  It is recommended you use a straight-line depreciation with a 10% salvage value.  During the first year that you rent out property, you will have to calculate the total depreciation by the number of months in the year that rent was collected.

2. Deduction for all management fees.

3. Deduction for all expenses incurred to maintain the dwelling, i.e., cleaning, repairs, upkeep on alarm or yard service contracts, maintenance of heating and air system, pest control and termite contracts, etc.

4. Postage and telephone call charges that may be incurred in the maintenance of the dwelling.

5. All charges for advertising the property for rent.

6. Insurance charges for your dwelling that you must maintain.  Please insure that you have contacted your insurance company to insure they are aware that the dwelling is now being rented.

7. All home improvements you make to prepare your rental for lease, as well as those improvements during the time it is rented.

8. All taxes incurred on the property.

9. All interest paid on the dwelling pertaining to your mortgage.

10. All maintenance fees and charges.

11. All service contracts for the home, to include an American Home Shield Policy, if you choose to carry additional repair insurance.

12. All cleaning and painting expenses you may incur.

13. Any expenses incurred if tenant must be evicted.

14. All yard or lawn maintenance contracts.

15. Any expenses incurred resulting from insurance claims (additional cost to owner).

16. All repairs incurred through normal wear.  Tenants are charged for misuse.

17. Depreciation on any replacement items that have a life value, i.e., new furnace, new air conditioner, refrigerator, dishwasher, stove, etc.  If you were to put up a fence on the property, put in combination storms and screens, a new roof, siding on the home, etc.  Repairs to these items are charged off as expenses during the year.  This only pertains to replacement.

The above list contains most items that you should be able to deduct.  Of course, tax laws are always changing and your tax accountant may include additional write-offs.

The normal property owner may be able to claim up to $25,000 loss on rental property during a given year.  All of these expenses are deducted from the rents that you will receive for the property.  Always check with your tax accountant.

TLC Property Management.com, Inc.

Georgia Family Realty.com, Inc.

Office :  (770) 460-0882

E-mail:  tlcrentals@gmail.com