Tax Time is Almost Here… Are You Prepared?
Part 2: Technology for Investors
The objectives of investment in Real Estate have traditionally been income and appreciation in the value of the property. But there’s much more to the story—there can be lucrative tax advantages as well: IF YOU ARE DOING IT RIGHT!
What’s an operating expense?
For tax purposes, you will figure your profit or loss each year from operating the rental property. Generally, you can deduct all expenses incurred to operate the rental. The following are potential operating expenses that are deductible:
- Cleaning & maintenance
- Bank charges – if a separate account is maintained
- Insurance – fire, casualty and liability
- Utilities – gas, electricity, water, cable, etc.
- Services – yard care, pool service, pest control, etc.
- Rental commissions
- Property Management fees
- Mortgage interest – on debt to acquire or improve the rental
- Property taxes
- Local transportation expenses
- Homeowner’s or association dues
- Tax return preparation fees
- Depreciation allowance
There are so many variables when it comes to operating expenses, and because taxation can have such a significant impact on your cash return as an Investor, it only makes sense to have both knowledge and technology working for you!
The fact is, being aware of the tax laws which affect Real Estate is a major first step in making the most of your property, but that’s only part of the puzzle… There’s a lot of labor, paperwork, and “red tape” associated with this type of investment, so unless you are leveraging the benefits of the best technologies, you’re probably spending an excessive amount of time “saving” money.
C’mon, you know the saying – Time is money. So the real question should be… How much money are you spending on your investment?
Property Management Companies like ours at Red Team Real Estate, use advanced technologies and industry leading practices to help you and your investments operate at their fullest potential.
Are you ready to learn more about no-stress reports, augmented cash flow, taxable income, tax breaks for repairs, and how to save more through overlooked deductions? Contact us today and start up the conversation— this is one call that will be well worth your time!
Red Team Real Estate and Property Management
Red Team Real Estate and Property Management was started in 2012 to focus on being the provider of quality service that has never been seen before in property management. Our approach is to serve our owners by providing professional, knowledgeable service with maximum value.
**Disclaimer: Red Team Real Estate is not a Tax advisor or CPA, and more specifically, we are not giving and cannot give tax advice. We do, however, work with CPAs and Tax Advisors to make sure our clients have the most current information for success.