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Tax Benefits of Using a Property Manager

May 28th, 2015 garnerproperties
Tax Benefits

Every year, we all pay our taxes. With rental properties, this can sometimes lead to a hairy mess, tracking payments, expenditures and depreciation of your assets. However, using a property manager to help with your rental investments can make filing your taxes a less stressful affair.

First and foremost among those benefits is the organization of your accounts. Property managers provide regular reporting for you on all expenses and all collected rents, allowing you to review those reports to aggregate your annual investments for upkeep and repairs as well as all income. Using our cutting-edge cloud-based management, our owners have in-depth access to all this information, giving them a simple way to get the information they need to accurately complete their taxes.

Tax BenefitsAnother benefit is the cost of management itself. In many situations, owners can deduct the costs and fees associated with using a property management service as a business expense. This will, in turn, lower the income tax liability for an owner who receives profits from a rental property, and help keep more of your earnings in your pocket.

Property owners can also easy gather the costs of professional services that may have been performed at your property, including landscaping, snow plowing or other contracted services, which can often be taken as business deductions. These professional services, performed by companies that you are not involved with or have any family relationships to, can further reduce your tax liability while allowing you to continue to keep up on your property and offer more appeal for your tenants.

In addition, any required repairs that needed to be completed during the year may qualify as further deductible expenses. The repairs must generally be “ordinary, necessary and reasonable in amount,” according to, but unlike major improvements or renovations, can be fully deducted from the taxes for the year.

The specific requirements for tax deductions may vary in your specific circumstances and situation, so you should always contact a tax professional – also often a deductible expense! – to discuss any specific questions you have regarding your tax filings. Contact us today and find out more about property management services with Garner Properties.

Written by garnerproperties

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