Landlord Tax Filing Help

cartoon on rental property income

Landlord Tax Help

Managing a property and ensuring that your tenants are satisfied is usually more than enough to constitute a full-time schedule. If you happen to have multiple rental units, the amount of work just multiplies and gets more complex. So, to avoid falling behind on the day-to-day activities, it is crucial that you do not direct your attention away from your leaseholders. Our services here at Taxhub can come in and allow you to continue running your business without worrying about any of your IRS-related obligations. The following are just some of the ways we can provide Landlord tax filing help and aggressively reduce your tax liability.

Depreciation Concerns

When you operate a rental property, the IRS allows you to take depreciation on the value of it as well as any leasehold improvements that you made. Traditional DIY software, however, often leaves a lot of unanswered questions. So, there is a good chance that some of your expenses will get overlooked due to the limitations of an algorithm-based platform. Our approach, on the other hand, is based on a case-by-case analysis of each expenditure related to your properties. This allows us to pinpoint important deductions that can be explored to minimize the final tax liability or maximize the tax refund.

Additionally, if you have made new equipment or property purchases in the regular course of business this year, the IRS may let you claim some accelerated depreciation. This means that you get to deduct that vast majority, if not all, of the accumulated depreciation in the first year for tax purposes. Doing so results in some book-to-tax differences that you may need to adjust in the subsequent years. This is why we are a great source for Landlord tax filing help.

Home Office Deductions

Have you done any of your rental-property-related work at your own home this year? If so, you qualify for a “home office” deduction. While most modern softwares will let you calculate the dollar figure related to this deduction, they can be fairly limited in terms of including all the necessary expenses. Since a home office can often result in a major reduction of your tax liability, your cost allocation to the office must be done correctly. This is especially true when you consider that the IRS tends to target individuals whose home office deductions fall outside the expected ranges for their service industry.

accountant working with client on rental property taxes

Overlooked Auto Expenses

When you drive to your rental property to oversee a repair or installation, per se, the mileage and any car-related expenses are fully deductible. As a sole-proprietor or property owner operating an LLC, you should always remember to keep a close track of your automobile usage. Doing so can make it easier to submit an accurate mileage report and claim the annual allowance for it. Nonetheless, you also get to deduct all or a percentage of a long list of car-related items that include everything from a basic oil change to brand new tires. The only caveat is to properly estimate the amount of time you spent driving the car for personal use versus business use. Due to the vast gray area in this section of the law, however, you should consider involving one of our specialists at Taxhub.

A Comprehensive Tax Interview

Since the list of deductions can go on to dozens of other items, Taxhub offers all new clients a comprehensive tax interview. The purpose of it is to ascertain all underlying expenditures that the taxpayer may not be aware of. For instance, everything from unorthodox marketing campaigns to your cell phone plan may be a perfectly valid expense that you can deduct from your gross income. As mentioned earlier, a lot of tax software struggle in this area because they cannot ask personal questions to each person that uses them. Our accountants, however, can use your industry, area, and property activity to determine if there might be some other expenses that you forgot about. That way, we will be able to reduce your tax liability to the bare minimum while ensuring that all the laws are followed and returns are properly filed.