Owning a rental property can be a great source of revenue for business owners and homeowners. Any unused space can certainly be turned into a profit for someone if they know what they’re doing. However, property taxes on a rental building can be particularly confusing for even the savviest business people. We’re sharing a few things you need to know about Dallas property taxes when it comes to owning a rental property.
Rental Property Tax Deductions
If you haven’t been claiming deductions on your rental property taxes yet, then you should start. Deductions can save you a lot of money as a landlord. Who doesn’t love to save money? Our property tax consultants often tell our clients to claim the following deductions:
- Utilities: If you pay the rental space’s utilities such as electric or gas, you can deduct it
- Professional Services: Using The Hegwood Group to help you file your property taxes would be something you could deduct
- Advertising Expenses: Whether you advertised on the radio or elsewhere, you can deduct the costs
- Repairs and Maintenance: Things like landscaping or pest control are considered a tax-deductible
- Travel Expenses: If you live far away from your property and have to stay in a hotel or use your own car to get there, you can deduct those costs
Keep Track of Cash Flow
Every dollar you make or you lose must be accounted for in your taxes. Keeping a detailed spreadsheet of money that you’ve earned from your rental property helps you later file your property taxes. It’s important to write down all of your expenses as well. A rental property is an excellent source of cash flow but if you aren’t tracking where the money is coming and going, then you’ll have a hard time telling the IRS exactly what you made and what you lost.
Know the Value of Your Property
Whether it be a commercial building or a rental home, the local tax assessor’s office will review your property and assign a value to it and based on that value is how much you’ll pay in taxes. However, you are allowed to appeal that amount if you believe that the value isn’t accurate. Appealing your taxes is something you’ll need a property tax consultant to help you do as it can be very confusing.
The Hegwood Group Files Rental Property Taxes
Many of our clients have multiple properties in which they rent out. They come to us with all of their questions and we help them file their property taxes and appeal them where necessary. We understand taxes are confusing and that’s why we’re here to help you. Get in touch with us to learn more about our services or to schedule an appointment.