Owning rental properties can be a great investment, but there are certain tax considerations you need to keep in mind when it comes to renting out your property. Different tax rules apply to different kinds of rental properties, so this type of real estate investment can make your taxes complicated fast.
For example, do you rent out your vacation home? If so, the deductions can depend on how many days per year you rent out the house versus how many days a year the home is used for your personal use (including renting the space to relatives!). Or do you rent out just a part of your house, such as a room or basement apartment? In these cases, expenses such as real estate tax and mortgage interest must be divided as though you have two separate pieces of property.
Often, when it comes to real estate rentals and your taxes, the best investment is to bring in a tax professional to help make sure you’re handling everything right! Taxation Solutions, Inc. is a tax help company serving Memphis and the region. Our team has more than 40 years of experience helping taxpayers better understand their tax situation as well as assisting with tax problem resolution.
If you’re looking for more information regarding your particular rental property and the relevant tax rules, just give us a call today. We’re here to help.