Tax season is here! As Denver Metro landlords sit down to work through their 2020 taxes, it’s also a good idea to plan ahead for 2021 taxes. Being proactive can help you identify and take advantage of tax deductions that help Denver Metro landlords with rental properties in the area. As always, speak with your accountant about whether or not these deductions apply to your specific situation.
4 Tax Breaks that Many Denver Metro Landlords Overlook
- Maintenance and Repairs for Your Rental Properties: Any maintenance or repair-related costs that go to keep your rental properties in good condition are tax deductible. Whether it’s replacing an appliance or covering the cost of pest control due to the presence of mice, your investments go even further thanks to this deduction. Remember that the cost of supplies needed to complete the repairs is also deductible. If you rent tools, purchase light fixtures or even purchase a lawnmower to maintain the property, those can be deducted.
- Marketing Costs: Do you advertise your rental properties on television, online or on the radio? Denver Metro landlords should save receipts for their marketing costs, because they are a deductible expense. Check with your accountant to ensure proper documentation.
- Upgrades: Just like repairs are deductible, improvements and upgrades that you make are also considered deductible. Cabinetry, countertops, appliances and even decking could all be deducted from your taxes. Depending on what upgrades you have completed, a percentage of them could be deductible but others might not be.
- Services and Commissions: Did you know that Denver Metro landlords who work with property management companies like All County Denver Metro Property Management can deduct the fees that you pay? All fees that Denver Metro landlords pay to attorneys, tax accountants, real estate agents, notaries, investment portfolio managers, property managers and other professional services companies can be deducted. Because these are all considered business expenses, they all fall under the umbrella of what you can deduct.
Help from Denver Metro Landlords from All County Denver Metro Property Management
All County Denver Metro Property Management offers all property owners competent and honest property management services. From rental market evaluation to tenant placement, we can assist with all of your needs. Our team of real estate professionals looks forward to hearing from you about how we can make your investment a stress-free asset and keep your tenants happy. Call us at (720) 575-6100 for a free quote.