My husband does the management of everything, but I am in charge of the taxes. Generally having rentals is very beneficial tax-wise. Because of the depreciation, and the expenses you can deduct, often you show a loss on paper rather than a profit.
Of course, my husband is good at this, so we show a profit most years! If you have a "day" job and your income from that is too much, you cannot deduct your losses, but you can carry the loss from year to year.
Hubby keeps track of every income and expense on the computer, and keeps receipts for absolutely everything. One of the weirder things is the vehicle deduction. You can take a mileage deduction for the car when you spend time driving around. We haven't bothered when we had only 1 or 2 properties, but with 7 it is worth it. Now hubby drives around with a series of mileage logs, one for each property!
No comments:
Post a Comment