Open/Close Menu
Your Rental Housing Solution
Home · Property Management · Latest News : Landlord Tax Tips: Hiring Family Members is a Win-Win

Crucial Tax Tips For Landlords

Tip #12, Hire Family for Labor

FamilyYou should hire someone (like a family member) to do your work and write off the cost of labor, because you cannot deduct the cost of your own labor.

For example, if you paint your rental property or install a lock using your own labor instead of hiring a painter or a locksmith, you cannot deduct any expenses for labor.

However, if you hire a non-owner like your child or possibly your spouse, the costs are deductible against your income because they are considered to be rental expenses.

There’s no catch and it’s A-OK with the IRS. You will have more control over lowering your expenses while still keeping the ability to write them off. Be sure to check out this article if you want to find out more.

Tip #13, Pay Your Kids in an IRA

Pay your kids to do work on your properties and put the money in IRA accounts for them.

Teenager landscapeThis is especially a good idea if youve already maxed out on your and your spouses IRA contribution for the year.

So if youre at a high tax bracket the end of the year, hire your kids to landscape your rentals.

Youre better off avoiding the taxes on your extra income, and the money will be safe in a tax free shelter. Its a good way to help your kid prepare for their first property purchase.

Everyones tax situation is different, and this information should not substitute professional advice. Taxpayers should always consult with their tax advisors to consider specific factors that might affect their situation. For more Tax Tips and FREE Property Management Software for real estate investors, check out 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 Properties While On Vacation Calculating Gain on Sale of Rental Property New Property Management Software Makes Tax Prep a Breeze Sell Property To Yourself Deduct Losses Even If No Expenses Make Personal Interest Deductible

American Apartment Owners Association offers discounts on products and services for landlords related to your real estate investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at

To subscribe to our blog, click here.

Copyright © 2004 - 2016 All Rights Reserved.