As a landlord you have to treat your properties and your tenants as though you?re running a business, because you are. Part of running a business is knowing what tax deductions you can legitimately take and then taking full advantage of them.
Interest can be your biggest deductible expense. Make sure to include your mortgage interest as well as any interest you've accrued on loans or credit cards that you used for property repairs, maintenance or anything else related to your property.
Speaking of repairs, any repairs that are ordinary, necessary and within an accepted amount are deductible.
Of course you can deduct your employees? salaries BUT remember to include everyone you use as an employee. So independent contractors who are hired to repair items or routinely perform maintenance are considered employees.
If you suffer any damage or theft to your properties you can get a tax deduction for part of maybe even all of the cost. This can fluctuate so you?ll need to look into it carefully and follow the rules closely.
Insurance is one thing landlords often forget to deduct. Deduct your premiums for any insurance you have for your properties and any insurance you supply to your employees.
There are more deductions that landlords can take so make sure you read your tax forms carefully or an accountant who specializes in taxes for landlords.