Joe Capote – Certified Investment Agent Specialist Expert in Real Estate Investments and Properties

A significant benefit of investing in real estate is the ability to deduct expenses when renting the property, such as maintenance, taxes and interest. These expenses include but are not limited to:

• Advertising
• Cleaning and maintenance
• Commissions
• Depreciation
• Employers, contractors, non-employed staff (all wages related to rental properties, including property managers, repairmen, etc.)
• Insurance (Including fire, flood, landlord liability, and employee health)
• Interest (including mortgage interest, interest on loans used for improvements, etc.)
• Legal Fees
• Local transportation expenses
• Long distance travel (including driving, airfare, hotels and meal costs related to a rental activity)
• Loss (due to destruction, theft, etc)
• Professional services (including attorneys, accountants, real estate advisors, etc.)
• Repairs
• Utilities

You are able to deduct these expenses in the year you pay them. For the most current information on expenses for tax deductions, go to www.irs.gov or consult a tax accountant.

You can deduct the cost of repairs to your rental property; however, you CANNOT deduct improvments. Improvements add to the value of the property and increase the tax basis. They are not recovered by taking depreciation. Consult your tax professional for more information.

For more information regarding real estate as an investment in San Mateo/San Francisco counties, contact me today!

Joe Capote is a real estate professional and not a certified accountant or tax professional. The information in this article was gathered using the following resources:
http://www.nolo.com/legal-encyclopedia/top-ten-tax-deductions-landlords-29497.html
http://www.irs.gov/publications/p527/ch01.html#en_US_pub-link1000218984
http://www.irs.gov/businesses/small/industries/article/0,,id=98921,00.html
Joe Capote makes no warranties, express or implied, from this information. Each individual tax situation is different, and all buyers/investors should consult with a certified tax professional or CPA to assess their particular tax situation.