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Rental Expenses

You generally deduct rental expenses in the year you pay them (or in the year incurred if you use the accrual method of accounting).

Rental expenses are not the same as capital improvements, which must be depreciated over various number of years, depending on the type of improvement.

Land is never depreciated.

Types of rental expenses:

Advertising

Auto

Cleaning

Commissions

Depreciation

HOA fees

Insurance

Interest (other)

Lawncare

Legal

Maintenance

Management fees

Mortgage Interest

Pest control

Points

Pool service

Rental payments

Repairs

Taxes

Transportation (local)

Travel (away from home)

Utilities

Types of Capital Improvements:

Additions: Bedroom, Bathroom, Deck, Garage, Porch, Patio

Lawn & Grounds: Landscaping, Driveway, Walkway, Fence, Retaining Wall, Srinkler System, Swimming Pool

Heating & Air Conditioning: Heating System, Central AC System, Furnace, Duct Work, Central Hunidifier, Filtration System

Plumbing: Septic System, Water Heater, Soft Water System, Filtration System

Interior Improvements: Built-In Appliances, Kitchen Modernization, Flooring, Wall-To-Wall Carpeting/Tiling

Insultation: Attic, Duct Work, Floors,Pipes, Walls

Miscellaneous: Storm Doors & Windows, New Roof, Central Vacuum, Wiring Upgrades, Satellite Dish, Security System

IRS Publicaions 527 and 535 contain additional information.

To schedule a FREE, Confidential, No-Obligation Tax Consultation, call me today at (561) 746-1926 or (561) 339-8102.