7 Tax Tips Every Real Estate Agent Should Know.
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In this video I’m going to give you 7 great deductions you can easily apply to your real estate related taxes.
Taxes/Insurance/Utilities — You can deduct all of those real estate tax, insurance and utility charges you have already paid from your income tax.
Repairs — Repairs and supplies needed for upkeep of the property are deductible. Great for saving on your income tax.
Home Office — If you work from your home, you can take the home office deduction. This means you can deduct that portion of your home’s expense, such as mortgage payments, tax and insurance, utility payments, etc., related to your home office. (Separate Meter is usually safer for these deductions, otherwise its a percentage of total home sq.ft.)
Publication 587, Business Use of Your Home (full explanation of deductions for home office
http://www.irs.gov/pub/irs-pdf/f8829.pdf (the actual form)
Depreciation — Now most people know you can depreciate a residential building for 27.5 years but
You can also depreciate the parts that make them habitable – HVAC equipment, hot water heaters, plumbing and light fixtures – depreciate at different rates
Office Deductions — Office supplies and equipment are deductible. Cell phone, computer, printer, paper for the printer, envelopes, stamps. If its related to your real estate business, it may be a viable income tax deduction.
Business Expenses — Subscriptions, dues and fees are deductible. Internet, newspaper, real estate events, REIA groups, seminars – These are all things that are likely tax deductible for real estate investors.
Mileage — Do you drive a car? Mileage of your personal vehicle is deductible. SImply keep a log of the miles driven related to your real estate activities and the savings can really add up.