Tax Deductions for Landlords

Basically the rule is that you can deduct the expenses related to your home office as it relates to managing your rental properties to the extent that you use them exclusively for that purpose. That means you cannot use that desk or that phone for taking care of any personal business. The cleanest way is to have a separate area with a separate phone and or fax line dedicated exclusively for you to manage your rental property. The other challenge has to do with the question is this office your principle place of business. So, if you have some other way of making your money and the rental thing is just extra then you have a larger burden in terms getting a tax deduction for the space. So if you use the office and the machinery in it for managing and handling administrative tasks for your rentals and you do not do this work anywhere else, then you can deduct it. If you use the office to conduct interviews and hold meetings and not anywhere else, then you can deduct it. The last option is for people with an office separate from the main home building, so if it’s in the garage or somewhere else away from home completely, it will still be deductible. The primary concern is that the office is used only for the business related to your rental properties.

As for how much these deductions are worth consult your tax expert and as always, let “Keep all receipts,” be your mantra.