Business Tax Recovery Logo


Tax Deduction Consulting: Overlooked Rental Property Deductions Westbrook ME

Generally, rental income is defined as any revenue you receive from the occupancy or use of residential property. Rent, obviously, is included in that revenue. Many owners are surprised to learn revenue also includes rent advancements, expenses paid by a tenant and any security deposits not returned to the tenant. In fact, revenue can also include amounts paid to cancel a lease, even if you had to sue the defendant to get it.

Michael John DellOlio (RFC®), JD, MBA
(207) 294-0401
16 Middle Street
Saco, ME
Company
Michael J. DellOlio & Associates, L.L.C.
Qualifications
Education: B.S.,MBA,J.D.,NASD Series 6,7,24,63,65; Maine Insurance License
Years of Experience: 24
Membership
IARFC
Services
Invoice, Estate Planning, Business Planning, Portfolio Management, Trustee Service, Pension Planning, Retirement Planning, Tax Planning, Tax Returns, Employee Benefits, Stocks and Bonds, Mutual Funds, CD Banking, Annuities, Life Insurance, Disability Income Insurance, Long Term Care Insurance, Medical Insurance, BuySell, Compensation Plans

Data Provided by:
H & R Block
(207) 773-0221
252 Saint John St
Portland, ME
 
Scott Associates
(207) 772-0441
12 Revere St
Portland, ME
 
Hutnak Stephen A LLC
(207) 772-1600
100 Middle St Ste 401
Portland, ME
 
Brown Barry J
(207) 879-7000
22 Free St Ste 301
Portland, ME
 
Liberty Tax Service
(207) 828-4829
694 Forest Ave
Portland, ME
 
Johnson Virginia M
(207) 772-2322
686 Brighton Ave
Portland, ME
 
H&R Block
(207) 541-1981
629 FOREST AVE
PORTLAND, ME

Data Provided by:
David Thomas & Assoc
(207) 871-0123
477 Congress St Ste 1005
Portland, ME
 
Jackson Hewitt
(207) 899-1540
34 Atlantic Pl
Portland, ME
 
Data Provided by:

Tax Deduction Consulting: Overlooked Rental Property Deductions

Rental Property Tax Deductions

Own residential rental properties? This article discusses how income from those properties impacts your taxes.

Generally, rental income is defined as any revenue you receive from the occupancy or use of residential property. Rent, obviously, is included in that revenue. Many owners are surprised to learn revenue also includes rent advancements, expenses paid by a tenant and any security deposits not returned to the tenant. In fact, revenue can also include amounts paid to cancel a lease, even if you had to sue the defendant to get it.

Tax deductions associated with rental properties are strikingly similar to those found in any business. Technically, you can deduct any expense reasonably necessary to "manage, conserve or maintain" the property. Obvious deductions include mortgage payments, cleaning expenses, insurance premiums, service payments such as landscape maintenance, repairs, maintenance, etc. Overlooked rental property deductions include:

  • Expenses incurred in finding tenants,
  • Commissions paid to third parties that arrange for tenants,
  • Paying your accountant and/or lawyer,
  • Mileage for driving to and from the property [I said, "No more parties!"]
  • Depreciation of the property, and
  • Depreciation of items in the property such as washing machines, furniture, etc.

A few creative property owners have suggested that they should be able to deduct their customary and standard monthly rent if the property is empty. Th...

Click here to read the rest of this article from BusinessTaxRecovery.com