Tax Break Possibilities Tempt Paulding County Real Estate Investors

There are two specific times each year when Paulding County real estate investors find their thoughts wandering in the general direction of impending tax bills. As we approach year’s end, this is one of them. The other, of course, will be coming up in April—but this is the time of year when steps can be taken that affect the bottom line of what will come due later on.

My expertise is in Paulding County real estate, so I don’t offer specific tax advice—as always, that’s best handled by your own financial advisor. But tax benefits (in the form of deductions) are always part of the picture when I’m helping clients find Paulding County real estate for investment purposes. In that connection, there was one recent article that ran on the Realtor^® web site that effectively summed up seven main tax advantages that Paulding County real estate may offer owners who rent out their property. There are specific provisions in the tax code that qualify a property for each (which is why the piece was titled “Seven Possible Tax Deductions for Rental Property Owners”), but I think listing all seven possibilities in one place is worth repeating, so here goes:

Mortgage Interest Deduction (everyone already knows this one—the most obvious and potentially the most significant). What wasn’t mentioned in the Realtor article is the added possibility of deducting the expense for points paid in the year of purchase. That’s an expense that brings down a loan’s mortgage interest rate over the long haul while being deductible over the short haul.

Repairs – they have to be ‘necessary and reasonable.’ Likewise, improvements may qualify if they meet the same standard

Depreciation — this one is like other business assets that deteriorate over time due to wear and tear

Insurance — the expense common to many businesses

Professional and Legal — ditto

Outside labor — when you hire employees or independent contractors to ‘perform services…related to the rental.’

Travel — if your Paulding County real estate causes you to travel (for instance, if you live out of town), fuel expenses and meals may be deductible.

As usual, the caveat is the need to keep detailed records of every expense (your Uncle Sam isn’t the kind of uncle who takes your word for things).

When you list them all together, you have to agree these make quite an attractive handful of tax deduction possibilities. They really do account for a major appeal that a Paulding County real estate rental property can offer. To investigate the Paulding County properties with investment potential, give me a call anytime!

Thanks for reading this, Bion Grady.

Bion is a Real Estate Agent at Transitions Property Management & Real Estate. Paulding County Short Sales Realtor: Phone: 404-942-9897. bion@bionsellshomes.com.

The views expressed here are Bion’s personal views and do not reflect the views of Transitions Property Management & Real Estate. This information on Tax Break Possibilities Tempt Paulding County Real Estate Investors is provided as a courtesy to our viewers to help them make informed decisions.

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Bion Grady specializes in homes for sale in Paulding County, Home for sale in Cobb County, Homes for Sale in Douglas County, Homes for Sale in Bartow County, Homes for Sale in Cherokee County, short sales in Paulding County Georgia. Cobb County Georgia, Douglas County Georgia, Cherokee County Georgia, Bartow County Georgia, Dallas Pre-Foreclosure Help, Dallas Short Sales. Dallas Short Sale Realtor Dallas GA Short Sales. Dallas Realtor.