Three Missed Deductions in Real Estate

Hello, this is Noel Dalmacio, your ultimate CPA at LowerMyTaxNow.

If you are a current rental investor, there is a good chance that you are not taking advantage of hidden rental deductions. Why is that? Because, the tax law is as clear as a “mud,” that’s why. On this video, you will learn three missed deductions that you can take advantage of the next time you file your taxes. Here goes:

1. Start-up costs – these are expenses that you acquire BEFORE you start your real estate investment activities. Examples are: attorney and CPA consulting fees, business formation, due diligence costs, research of real estate market including travel expenses to see potential investment.

2. Purchase statement’s closing costs – certain closing costs are considered 100% deductible (interest, PMI & insurance) while others may not be deductible at all (reserves). Some costs are amortized (points & appraisal), and still others will be included into your property costs (title charges, recording fees & transfer items).

3. Home office expense – must be used regularly and exclusively for your property rental and management affairs. You can use the simplified option by claiming a standard deduction of $5 multiplied by the square footage of the home office (maximum is 300 square feet).

There you go! These are three missed deductions that you can apply to your next year’s taxes in order to maximize your deductions and increase your tax savings.

If you like to learn more, click the link lowermytaxnow.com and sign-in to receive my weekly blog. Until then, this is Noel Dalmacio, your ultimate CPA at lowermytaxnow.