Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-11-2008, 10:59 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,399
Blog Entries: 3
What are Deductible Rental Real Estate Expenses in 2007?

What can a Taxpayer deduct as a Rental Real Estate Expense?

Generally speaking, the IRS Tax Code specifically states that "the costs a Taxpayer incurs to place the property in service, manage it and maintain it generally are deductible".

The qualified deductible expense list is quite extensive and the list below shows some of the more common expenses associated with Rental Real Estate Properties as folllows:

-Advertising
-Cleaning and maintenance
-Commissions paid to Realtors for Maintaining the Property
-Depreciation taken on the building
-Disposal/trash collection charges
-Gardening and Landscaping expenses
-Homeowner's associations dues and condo fees
-Interest expense on Loan to purchase the Rental Property
-Legal expenses incurred in connection to Tenant Lease or Filing Eviction Notice
-Property taxes paid on the property
-Management fees
-Pest control
-Property Insurance premiums
-Repairs
-Tax preparation fee related to schedule 'E' Rental Property Schedule
-Travel expenses to your rental property if the primary purpose of the trip is business.
-Utilities

The above expenses are all allowable and deductible provided they are ordinary and necessary to properly maintain the rental property but they must be reasonable.

It is recommended that the taxpayer maintain excellent records to substantiate all of the above expenses. The IRS would be especially interested in having these records available in case of an audit.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning