| Brokers/Property Managers|Rental Agencies|Software|Education|Signs|Books|Blog|Helpful Links
 How to Use Depreciation to Lower Income
by Alex Davis
For example, you collect $12k rent for the year and paid $8k in rental expenses like mortgage interest and property tax. If you took no depreciation deduction, you would have to claim $4k in rental income on top of your regular income… but after a $6k depreciation deduction (typical for property worth $165k), you will claim a $2k loss while still making a $4k profit.
For more Tax Tips and Tax Saving Web Tools like DepreciateEm.com and DeferEm.com, check out TReXGlobal.com.
Click here if you missed Home Office Deduction.
American Apartment Owners Association offers discounts on products and services related to your commercial housing investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org. To subscribe to our blog, click here.   Posted on Thursday, October 2nd, 2008 at 9:34 am and is filed under AAOA Forum. You can follow any responses to this entry through the RSS 2.0 feed.
  You can leave a response, or trackback from your own site. Please tell us what you thought of this article. We value your opinion.
12 Responses to “Critical Tax Strategy For Landlords”
* required fields
  Add Super Saver to any membership for only $ 19.95! 
|
Join AAOA, Free!
       
|
ShareThis
By maximizing depreciation deductions, you minimize taxable liability and save money on taxes. Since you cannot immediately write-off the purchase cost of investment property, you must deduct the acquisition cost over the life of the property using depreciation.Most rental owners are able to turn profits after collecting rent and paying rental expenses, so depreciation deductions can be used to turn their profits into tax losses. That’s why rental property is considered such a good tax shelter – because you can report a loss even though you are making a profit. 
Categories
[...] Did you miss Use Depreciation to Lower Income? [...]
[...] Use Depreciation to Lower Income [...]
[...] Use Depreciation to Lower Income Spread Out Repairs Utilities that Landlords Pay American Apartment Owners Association offers discounts on products and services related to your commercial housing investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at http://www.joinaaoa.org. To subscribe to our blog, click here. [...]
[...] Use Depreciation to Lower Income Spread Out Repairs Utilities That Landlord Pays Auto Expenses You Can Actually Deduct American Apartment Owners Association offers discounts on products and services related to your commercial housing investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at http://www.joinaaoa.org. [...]
[...] Did you miss these tax tips: Home Office Deduction Use Depreciation to Lower Income Spread Out Repairs Utilities That Landlord Pays Auto Expenses [...]
[...] Did you miss these tax tips: Home Office Deduction Use Depreciation to Lower Income Spread Out Repairs Utilities That Landlord Pays Auto Expenses [...]
[...] Did you miss these tax tips: Home Office Deduction Use Depreciation to Lower Income Spread Out Repairs Utilities That Landlord Pays Auto Expenses [...]
[...] Did you miss these tax tips: Home Office Deduction Use Depreciation to Lower Income Spread Out Repairs Utilities That Landlord Pays Auto [...]
[...] investors, check out TReXGlobal.com. Did you miss these tax tips?Home Office Deduction Use Depreciation to Lower Income Spread Out Repairs Utilities That Landlord Pays Auto Expenses You Can Actually Deduct Look For [...]
[...] real estate investors, check out TReXGlobal.com. Did you miss these tax tips?Home Office Deduction Use Depreciation to Lower Income Spread Out Repairs Utilities That Landlord Pays Auto Expenses You Can Actually Deduct Look For [...]
[...] Office DeductionUse Depreciation to Lower IncomeSpread Out RepairsUtilities That Landlord PaysAuto Expenses You Can Actually DeductLook For [...]
[...] Office DeductionUse Depreciation to Lower IncomeSpread Out RepairsUtilities That Landlord PaysAuto Expenses You Can Actually DeductLook For [...]