Real estate certainly has it's perks - income potential, use of the property for a vacation, appreciation over time, equity paydown by guests and WRITE OFFS!
Real estate is unique because it’s not only a home but it can also be a business. One of the many great things about being a business owner are tax deductions!
I’ve dealt with my fair share of taxes but let’s face it, it's complicated, annoying, and untimely - especially on our money making rental properties.
When you spend money on typical and necessary expenses for your business (in this case your investment property) those expenses are eligible to be written off against the profits of the business. In turn, lowering your taxable income. We're not accountants so be sure to consult with your tax professional before making tax decisions. But it's nice to help brainstorm some great ideas for when you need to tax plan.
Let’s check out the most common deductions for short term rental property owners:
- Cleaning & Maintenance Fees On The Property
- Marketing Expenses
- Insurance, Mortgage Interest, Property Taxes
- Depreciation on the property
- Furniture, Appliances, Home Goods
- Hosting Essentials like Apps & Software
- TV Streaming Services & Internet
- Amenities provided to the guests during their stay
One of the easiest way to take advantage of end of the year tax savings is to re-invest in your property to ensure it’s differentiated and stands out from your competition.
I’ve found the most effective way to differentiate your property is to provide enhanced amenities that will give your guests a memorable, unique, and cool experience. In turn, increasing your occupancy rates and making your guests have an unforgettable experience. Some of these include upgrading your appliances, a small renovation to update bathrooms or kitchens, or investing in outdoor entertaining spaces.
At Trusted Home Goods we can help in two ways-
- We have top of the line products that will help enhance your short term rental appliances, amenities, and entertainment spaces. See how we can help today. Just for being a real estate investor use the promo code save5 to save 5% on our products.
- Join our partner community, Wealthy Investor by Ryan Pineda. Learn how to work together to dominate your market and achieve financial freedom through real estate investing.
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