Long-term, Short-term, AirBnB, Room, Bed, Garage, etc.
You receive income from renting your investment property; renting space in your home or simply by renting a room, or other areas in your home. All rental income should be reported to the IRS. Likewise, you can deduct rental related expenses; which will reduce the amount of taxes you pay on your rental income.
Strategy to Lower Your Taxes
First, you take advantage of all related tax deductions and credits so that your tax bill is low or zero dollars.
Then, you should be managing your rental like a business. I.E., you should be tracking and managing your expenses, purchases and payments in a way that helps to lower your taxes.
Are You Doing These Things?
Tracking Maintenance and Repairs
Deducting Depreciation
Reviewing Insurance Policies
Factoring In Property Taxes
Tracking Cleaning Costs
Tracking Mortgage Interest Payments
Hiring Good Vendors
Tracking All Labor Costs
Tracking All Supply Costs
Tracking Marketing and Internet Costs
Tracking Utilities Costs
Want to know more?