Charitable Contribution Vs The Property Management Fee

[Alex Hamilton]

I'm always asked, "what is the benefit of becoming a member of a non profit association of landlords ?"  My answer is:  If you are using a property management company, it would benefit you more,  if you could report that money you spend for the management of your property as a charitable contribution, and not as a management fee.

The management fee on your income Tax expense schedule decreases your adjusted gross income.  So, when you apply for funding for your real estate business, you show less income and are thus, less qualified for a Loan.  Our property owners that, we manage property in behalf, are able to show member dues to an I.R.S. designated 501 ( C ) 3 Tax Exempt Organization.  The management of their property is a benefit of membership.  Thus, the deduction decreases the amount of Tax due only, not  income reported.

Check out "cause driven" property management at www.hamiltoninvestmentschdo.com or call our Community Housing Development Organization at the number on our Web Site for more details.