Investor · Abilene, TX · Member since 2013 · 36 posts · 14 votes
I'm looking for the down and dirty on how taxes will go this year for my rental property? I have owned this duplex (my first rental) since November. I have been saving receipts and checks from my tenants which I'm not sure if thats necessary. Any feedback would be much appreciated!
@Nicole Grant there's a lot that goes into investment property taxes.
If you've only owned it since November, I would assume your property taxes on it would be low. Additionally, I would assume your eligible deductions for this year would be minimal as well.
What do you mean by saving receipts and checks from tenants?
I have been saving receipts on repairs and any of my marketing expenses. and saving the checks from my tenants for rent. How do you keep track of the gas mileage/expenses from showing the rental or doing repairs?
I have been saving receipts on repairs and any of my marketing expenses. and saving the checks from my tenants for rent. How do you keep track of the gas mileage/expenses from showing the rental or doing repairs?
There is a great deal that you will need. You will need a detailed list of your upgrades/repairs to the property from before it was ready to be rented. You will also need to know what was done afterward.
You will need your HUD-1/or other closing statement from the purchase.
You will keep track of your mileage from your place of business to the rental.
Mileage is typically not deductible from home to the rental; however, if you go from the rental to Home Depot and back to the rental. The Home Depot trip would be deductible to and from.
If you had a much larger portfolio then you possible could be in a situation where you would qualify to deduct more if you had a home office.
Thanks, those were all along the lines of what I was thinking.. Do you get a tax break for owning the property? or taxed more for the income?
I do have a home office due to my full time job so I will get with my CPA soon and see what I will need.
Nicole,
Your home office would be disqualified as a basis for leaving for mileage as it is still your first trip from home.
Taxable income or loss will depend upon your numbers. What did you pay for the property, what percentage is rental, what is your income, your actual expenses this year. Where is the property etc....