Here are 7 of the most commonly missed real estate tax deductions.
It’s that time of the year again that we love to hate: doing our taxes. Most of us hate looking for all those receipts and trying to make sure we take advantage of all deductions.
If you own real estate, you need to realize there are a few deductions you can take advantage of, especially in regard to your business-related expenses. One thing you must remember is that an expense can only qualify for a deduction if it meets the following criteria: It must be on something normal and essential; it should have something to do with your core business, and you must justify the amount.
Here are the 7 most commonly missed real estate tax deductions:
People who are self-employed or small home-based business owners can apply for health insurance premium deductions. There are significant changes in the health sector that business owners can take advantage of. You cannot let this opportunity go by.
Business Travel Expenses
If you travel, stay in a hotel or go for a conference related to your business, list everything from travel expenses to the hotel room to the conference fees as deductions. You can also qualify for 50 percent on your meals. You can use the Mile IQ app to record all your journeys so that calculating mileage becomes easy.
Don’t struggle to do your accounts and make mistakes when the fees payable to an accountant qualify for a tax deduction.
Utilities and Internet
People who operate home offices can ask for a tax deduction on bills related to utilities such as the Internet, electricity and phone bills since a good percentage of them go toward the business.
This is another area where home-based workers can claim a tax deduction. If you live in a managed community, some of the fees you pay as a homeowner are real estate tax deductions.
Do you spend any money on advertising your business? Keep a record of those costs and make sure to include ads put in newspapers and on logos.
Professional Membership Dues
Whatever professional association you’re a member of should not cause you trouble when you’re paying your dues since they’re tax deductible.
Don’t forget the amount of money you spent of business-related software.
By using these seven real estate tax deductions, you might see a little more green in your tax return or send a little less to the IRS.