Tax Deductions for Property Managers
Welcome, 2014! The new year brings new beginnings, new projects, resolutions, and a dawning dread that tax time is just around the corner. Okay, it’s not just around the corner, exactly. But time flies and you should give yourself plenty of time to prepare so you’re not up all night the day before taxes are due.
As a property manager, you’re entitled to deduct expenses related to your business. As long as you use an item for business purposes and not personal purposes, you can legally deduct it. Some of the items property managers often deduct include the following:
Insurance — Insurance purchased to protect your business property or liability insurance are deductible. If you work from home and have an office there, part of your homeowner’s insurance may be deductible.
Professional services — If you pay someone for consulting, legal services, or any sort of professional assistance you need for your business, those expenses are deductible.
Equipment rentals — If you rent equipment for upkeep of your property, like a power washer, rental fees are deductible.
Office expenses — Anything you purchase for your office, like printer ink, envelopes, business cards, etc., are deductible as long as these items are not used for personal use.
Travel expenses — If your duties require that you travel on your own dime, those expenses are deductible. Did you attend a conference last year or visit an out-of-town property to learn best practices? Don’t forget to deduct those expenses.
This is just a sampling of the deductions you may take as a property manager, so it’s best to consult an accountant before tax time. And make your first appointment soon, because taxes will be due before you know it!
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