Rental Property Deductions Can Help You Save More
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If you have a US rental property, there are several deductions you can take to reduce your US taxes. You can deduct:
- Repairs - any improvement that brings your property back to its original state can be deducted. Capital improvements are those that increase the value of your property and those are not deductible.
- Start-up costs - you can deduct up to $5,000 of the costs you incurred to get your property ready for rental.
- Management fees - if you use a management company to handle the day-to-day matters of your rental property, these fees are deductible.
- Interest - you may deduct the interest paid on a mortgage to purchase or improve a rental property.
- Home office - if you use a home office exclusively to manage the operations of your rental property, you can deduct a portion of your home’s expenses, such as rent or mortgage interest, utilities, taxes, insurance and internet access.
- Travel - you can deduct any travel to the US directly related to the management of your property.
Submitted on Jun 09, 2014 - Category: Expat Finance
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GreenbackExpatTaxServices
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David is an IRS Enrolled Agent, an MBA and an experienced finance professional and entrepreneur. David and his wife, Carrie, were frustrated with the process of filing their expat taxes. They found plenty of accountants, but few who could accurately prepare expat taxes. There were expensive accountants who treated them like a number and US CPAs who were well meaning, but not up to date on the rules as they apply to expats. Together they decided there had to be a better way. So they created the kind of company they wanted to work with - and Greenback Expat Tax Services was born!
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