This bestseller is the only book on tax deductions specifically for residential landlords! If you own rental property, you should be taking advantage of the many tax write-offs available. Every Landlord's Tax Deduction Guide gives residential landlords the plain-English guide they need to save money on taxes -- without the services of a high-priced accounting firm. This book explains how to maximize your deductions. Find out how to:
fill out IRS Schedule E take real estate tax credits figure out if an expense is a repair (deductible) or an improvement (depreciable) maximize your depreciation deductions deduct losses arising from real estate ownership keep proper tax records deduct home office, travel, casualty losses â€" and much more Every Landlord's Tax Deduction Guide is comprehensive yet easy to read, jam packed with interesting and relevant examples. The 2nd edition is completely updated to reflect the latest tax information and numbers
Table of Contents
Introduction
A. Why You Need to Know About Tax Deductions B. The Ever-Changing Tax Laws C. Icons Used in This Book
1. Tax Deduction Basics for Landlords
A. How Landlords Are Taxed B. How Income Tax Deductions Work C. How Property Ownership Affects Taxes D. The IRS and the Landlord
2. Landlord Tax Classifications
A. The Landlord Tax Categories B. Business Owner Versus Investor C. Are You Profit Motivated? D. Real Estate Dealers
3. Deducting Your Operating Expenses
A. Requirements for Deducting Operating Expenses B. Operating Expenses That Are Not Deductible
4. Repairs
A. Repair Versus Improvement B. The General Plan of Improvement Rule: A Trap for the Unwary C. How to Deduct Repairs D. Tips for Maximizing Your Repair Deductions
5. Depreciation Basics
A. Depreciation: The Landlord's Best Tax Break B. Understanding the Basics C. How to Depreciate Buildings D. Depreciating Land Improvements E. Depreciating Personal Property F. When You Sell Your Property G. Tax Reporting and Record Keeping for Depreciation
6. Maximizing Your Depreciation Deductions
A. Determining the Value of Your Land and Buildings B. Segmented Depreciation
7. Interest
A. Interest Landlords Can (and Can't) Deduct B. Mortgage Interest C. Other Interest Expenses D. Points and Prepaid Interest E. Interest on Construction Loans F. Loans With Low or No Interest G. Loans on Rental Property Used for Nonrental Purposes H. Keeping Track of Borrowed Money
8. Start-Up Expenses
A. What Are Start-Up Expenses? B. Determining Your Business Start Date C. Avoiding the Start-Up Rule's Bite D. How to Deduct Start-Up Expenses E. If Your Business Doesn't Last 15 Years F. If Your Business Never Begins
9. The Home Office Deduction
A. Qualifying for the Home Office Deduction B. Calculating the Home Office Deduction C. IRS Reporting Requirements D. Audit-Proofing Your Home Office Deduction E. Deducting an Outside Office
10. Car and Local Transportation Expenses
A. Deductible Local Transportation Expenses B. The Standard Mileage Rate C. The Actual Expense Method D. Other Local Transportation Expenses E Reporting Transportation Expenses on Your Tax Return
11. Travel Expenses
A. What Are Travel Expenses? B. Deductible Travel Expenses C. How Much You Can Deduct D. Maximizing Your Travel Deductions
12. Hiring Help
A. Deducting Payments to Workers B. Employees Versus Independent Contractors C. Tax Rules When Hiring Independent Contractors D. Tax Rules for Employees E. Hiring Your Family F. Hiring a Resident Manager
13. Casualty and Theft Losses
A. What Is a Casualty? B. Calculating a Casualty Loss Deduction C. Disaster Area Losses D. Casualty Gains E. Tax Reporting and Record Keeping for Casualty Losses
14. Additional Deductions
A. Dues and Subscriptions B. Education Expenses C. Gifts D. Insurance for Your Rental Activity E. Legal and Professional Services F. Meals and Entertainment G. Taxes H. Unpaid Rent
15. Vacation Homes
A. The Vacation Home Tax Morass B. Regular Rental Property C. Tax-Free Vacation Home D. Vacation Home Used as Rental Property E. Vacation Home Used as Residence F. Calculating Personal and Rental Use G. Converting Your Home to a Rental Property
16. Deducting Rental Losses
A. What Are Rental Losses? B. Overview of the Passive Loss Rules C. The $25,000 Offset D. The Real Estate Professional Exemption E. Rental Activities Not Subject to PAL Real Property Rental Rules F. Vacation Homes G. Deducting Suspended Passive Losses H. Tax Reporting for Passive Rental Losses I. Strategies for Dealing With the Passive Loss Rules J. At-Risk Rules K. How to Deduct Rental Losses
17. Record Keeping and Accounting
A. Record Keeping Made Simple B. Accounting Methods C. Tax Years
18. All About Schedule E
A. Who Must File Schedule E? B. Filling Out Schedule E C. Schedule E Example
19. Claiming Tax Deductions for Prior Years
A. Reasons for Amending Your Tax Return B. Time Limits for Filing Amended Returns C. How to Amend Your Return D. How the IRS Processes Refund Claims
20. Help Beyond This Book
A. Secondary Sources of Tax Information B. The Tax Law C. Consulting a Tax Professional
Index
