I own 5 Airbnb’s, and I did it in three years, and so can you !
Heck yea!!! 5 of them baby!! Did it in 3 years! Thanks to Christopher James Russell for taking my calls and lending me his peeps all the time. And thanks to David Wright for always dealin with the BS helping me. And my mom for liking all my posts 🙂 And of course to my dad for always saying wow. 🙂
Here comes tax time, are you keeping track of the top deductions?
Creating passive income, building equity and gaining appreciation are all great reasons to own property. But it’s also important to know that there are huge tax benefits while owning a rental property. Unlike stocks and bonds there amazing tax breaks for rental property owners. It’s important to know what they are so you can keep track of them
Let me put a disclaimer out there, I am not a tax professional and different set of circumstances can be different outcome for each individual. Please consult with a CPA or accountant to understand how these tax ramifications may apply to you.
With that out of the way here are a dozen ta benefits for rental property owners
Repairs: Typically, repairs to your rental property are deductible in the year they are made. Check with your accountant on whether larger projects categorized as “improvements” should be depreciated rather than deducted (see #3 for more information). Any repair to your plumbing, heating, electrical, or carpentry may be a deduction, lowering your rental income.
Interest expense: While mortgage interest is typically the largest deduction available to landlords, it is not the only form of interest expense. For property-related expenses, you can subtract interest on home improvement loans and even credit card interest.
Marketing: Any paid ad you run for renters is a deductible cost, whether you advertise it in local newspapers or magazines or pay to get it listed on a rental property website.
Travel expenses: Both local and long-distance travel expenses count against this exclusion if the primary reason for the trip was related to rental property operation. The following are examples of typical travel expenses:
-Attending a viewing with a potential tenant -Driving around doing market research or looking at potential homes to buy -Attending a landlord seminar or course for rental investing — talk to your accountant about which hotel, airfare, vehicle, or other expenses you can write off and how to prove them. -Material sales at the hardware store
Insurance: You must insure your investment, and your lender would need it if it is mortgaged. Insurance premiums, including liability, casualty, and all other insurance related to the rental property, are deductible.
Local property taxes: While real estate taxes are imposed all over the country, you can subtract the district, city, and school taxes you pay on your rental property.
Theft and casualty losses: Break-ins or property damage caused by illegal behavior or even acts of nature are usually completely deductible. Of course, this only applies to costs not covered by insurance, such as deductibles charged on a lawsuit.
Legal, accounting, and management services: You can hire experts in all of these fields, and the fees you pay them are tax deductible in the year they are used. Uncle Sam will pay a portion of the cost of hiring a management firm to handle all of the headaches of rental property ownership and tenant relations by a deduction from the rental income tax.
Offset other investment income: In certain cases, losses from a rental property can be used to offset income from other investments. Why would you lose money? If your depreciation deduction is substantial, it can wipe out a lot of real income without you spending any extra money. You may be enjoying a great positive cash flow, but combining mortgage interest and depreciation you could show a paper loss. Again, check with your accountant to see if this deduction applies to you.
These rental income tax cuts can add up to significant tax savings and increase the profitability of your investment. Consult your tax advisor to see if you can benefit from these valuable deductions for rental property owners.
Any rental properties may have suffered losses as a result of the coronavirus pandemic’s economic impact. However, tax relief provisions included in legislation passed by Congress in 2020 could be of assistance. A high-level overview of this complex issue is here, but check with your tax professional to see whether the provisions apply to your situation.
Visit the Internal Revenue Service website for more statistics and publications on rental income and expenditures.
Looking back at the January report, the numbers are insane!213 pending sales in 2021 vs 108 in 2020, thats a 97% increase. um….. what?449 inventory of homes in 2021 vs 716 in 2020, -37%so to recap, almost 100% in sales velocity upwards but almost 40% less homes.5.8 month inventory in 2020 vs 3.2 in 2021. 6 months inventory is a balanced market for both Buyers and Sellers.What a time to be a realtor or a buyer! Seller are raking in the $$$. Just submitted a offer on a house for over a million just upwards of 5% from asking, and they wont even counter.
🏡 𝑺𝑶𝑳𝑫!🏡 📍 5308 Harrison St, Hollywood, FL 33021 Very happy for my buyers for closing on this stunning home in Hollywood! It was a pretty incredible journey! I was helping them identify a product with good resale, future investment opportunity and the ability to gain some appreciation.We sifted through townhomes, midrises and highrises, believe it or not we looked through Hollywood, Sunny Isles and Aventura, and almost went to Brickell and the Gables.
However, with such dense areas filled with condos, (beautiful ones) the lack of uniques (lot of inventory) and governing bodies (problematic HOA’s w/ rigid rental restrictions) can create a future obstacle when looking at it from a landlord and sales viewpoint. Making it challenging to separate the product down the road from over 12 months or more of inventory vs a very limited Single Family House market (1.8 months of inventory) now, and most likely in the future 3-5 years. Instead of saying hey, the condo is beautiful, go for it. I wanted to let them know the obstacles they can come across. They settled on a one of a kind home in Hollywood with incredible back yard swag and nice curb appeal. When they asked me what I though, I told them I would consider buying it from them when they are ready. 🙂 Stamp of approval! 𝑻𝒉𝒊𝒔 𝑫𝒐𝒄𝒌𝒕𝒐𝒓 𝑴𝒂𝒌𝒆𝒔 𝑯𝒐𝒖𝒔𝒆 𝑪𝒂𝒍𝒍𝒔Instead of saying hey, the condo is beautful, go for it. I wanted to let them know the obstacles they can come across. They settled on a one of a kind home in Hollywood with incredible back yard swag and nice curb appeal. When they asked me what I though, I told them I woudl consider buying it from them when they are ready. 🙂 #Stampofapproval