How Do You Make the Most Out of Landlord Tax Deductions?
The tax code is full of deductions for landlords. Before you can take advantage of these deductions, you will need a basic understanding of how landlords pay taxes and how tax deductions work. If you own a rental property, you should know your Federal tax responsibilities. All rental income must be reported on your tax return. In general, the corresponding fees can be deducted from your rental income.
We will take a closer look at the various Federal tax deductions available to landlords, and how you can make the most of them. Most States also impose income taxes—which you will have to research on your own—but State income tax laws tend to resemble the Federal system.
Keep in mind that we will not provide you with an extensive guide for filling out a tax form, but rather, make you understand the basics of the tax system and teach you some tax-reduction strategies.
Tellus TIP:
If you want a detailed analysis of your tax situation, consult with a professional lawyer or accountant.
In general, all landlord owners of residential rental property are required to pay the following taxes:
Income taxes on rental income and profits from property sales
Property taxes
Social Security and Medicare taxes (only applicable to some landlords)
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