Are You Taking Advantage of All Your Investment Property Tax Deductions?

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Make sure you know your Deductions

Every year millions of rental property owners pay more taxes than they owe. They do this because they may not know of all the investment property tax deductions available to them. This can sometimes be the difference between making it or breaking it on your rental property. These are some of the deductions suggested by Stephen Fishman at

Deductions You May Not Know About

Deductions for your Home Office Expenses are available provided you have a specific area or room set aside for you to take care of all your income property business.

Deductions can be taken for the Interest on your mortgage payments, on loans for property improvements, and interest on credit cards that are used only for the investment property’s business.

You can deduct the cost of necessary Repairs to the property for the year in which they were made; like leaks, broken windows and doors, wall repair, painting, flooring, etc.

You can deduct a portion of the Depreciation of the investment property. This deduction is broken up over several years. But, check into this one. You may be able to increase this deduction over the first several years using segmented depreciation.

Deductions for Local and Long-Distance Travel. This income property tax deduction can be taken whenever the owner has to drive anywhere for their rental activity. Any time you have to see tenants or go shopping for repair equipment. You can also deduct the gas you use, the maintenance and repairs for that vehicle used in investment property business OR you can record your mileage at 55.5 cents per mile (2012) and deduct your mileage. You may also deduct your airfare, hotel, meals and other expenses if your property is not in your home area. Keep receipts.

You can also deduct the Wages of the resident manager and any and all repairmen for the rental property.

Deductions can be taken for all or part of Damage or Destruction due to fire or flood. But, how much you can deduct will depend on how much of the loss was covered by insurance.

Deductions for Insurance Premiums for any policies you may have on the investment property. Policies like, employee health and worker’s comp, fire, flood, liability and theft.

And you can also deduct all Professional and Legal Services that are directly related to your investment property. These fees include: accountants, property management companies, property investment advisors, lawyers, etc.

Every year tax law changes in some way; if you want to be sure that you get all the investment property tax deductions for 2011, contact your tax attorney or CPA. If you are on your own I suggest reading “Every Landlord’s Tax Deduction Guide” by Stephen Fishmen at It is a great site to find all sorts of tips and information for investment property owners. April 15 is quickly coming, don’t miss out and pay more than you have to.

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