I started to rent out my condo this year in April 2022. How should I plan for the upcoming tax year?
The key to having a rental is having good records. Decide on your system and track the income and expenses you incur related to your rental. Keep in mind you may also be able to deduct expenses related to getting your property ready to rent so track those as well. All of these items will be reported on a Schedule E form.
A landlord is allowed to deduct any reasonable expenses used in the conduct, maintenance and managing of her rental properties. That includes:
- Necessary and reasonable repairs to the property
- Travel costs incurred while doing business
Expenses that are sometimes overlooked, according to David Ayoub, CPA in Syracuse, N.Y., are meal expenses for employees. “You can only deduct 50 percent of meal expenses incurred while doing business with potential clients or business associates. However, if you throw a Christmas party or a summer picnic for your staff, it’s generally 100 percent deductible.”
Here is a link to an article that provides more information for taxpayers with new rental property. https://turbotax.intuit.com/tax-tips/rental-property/real-estate-tax-and-rental-property/L3e09vT71
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