@Helpneeded12 wrote:
Got it. Thank you!
I think if I need to make repairs to the property, I can note those as costs and decrease the taxable income. Is this something that I should consider?
You should be taking advantage of every expense deduction you can find. Repairs for sure. Depreciation is also required (and you will be taxed to recover the depreciation when you sell the property even if you didn't take it, so take it.). Do you pay for utilities? Do you maintain separate property insurance (fire, earthquake, flood, liability) that is separate from your tenants' insurance on contents? If not, you should have insurance, and that is a deductible expense too. Property taxes are deductible rental expenses on schedule E instead of as itemized personal deductions on schedule A. Does the property have a mortgage? Do you pay a property maintenance company to keep an eye on things?
