How soon should landlords be thinking about taxes? (Right now)
Depending on when you’re reading this article you may be thinking that you have 3 months, 6 months or even one year until tax time but the reality is that as the top Retail Property Management company in Ventura CA we can tell you that as an owner it’s never too early to start thinking about taxes.
In this article, we will share with you several tips you can use to get ready for tax season.
Don’t Forget to Claim A Home Office Space
Even though you may not consider the income from your rental property to be a regular business, you should treat it like a business and devote a dedicated office space in your home because you can then claim that home office space.
Make sure that your home office space is used just for your business or rental activities because you can then deduct a portion of your monthly expenses in your home like Internet and phone against your rental revenues.
Speak with your CPA or accountant for more details.
Deduct Repairs and Improvements
It’s expected that you’re going to make repairs and improvements to your rental property over time.
Most CPA’s will define a repair or improvement as anything that will put your rental property back into prime condition making it read to rent.
Some basic examples of repairs include: changing the locks, fixing the roof or anything that’s in need of repair inside the rental property.
Improvements are defined as anything that will increase the value of your rental property and its longevity over time.
Track Your Mileage
Last of all, but most important, if you use your personal car or truck for your rental activities like collecting rent, meeting with renters or picking up supplies that you’re going to use on your rental property then you should deduct your mileage against your total rental revenue.
If you’ve not been able to successfully track your mileage in the past, you should download an app for your smartphone like MileIQ which runs in the background and makes tracking your mileage easy.
For property management in Ventura, CA contact Utopia Property Management today by calling us at (800) 294-4656 or connect with us online.