Do you have a lot of medical bills that you pay on each month? Could those medical bills be deducted from your tax bill this year? I was helping my mother take care of all of her finances after my dad passed away. I didn't realize how many bills she had coming in each month for medical treatments that my dad had undergone months, even a year earlier. I started doing some research about medical bills and tax deductions. If you have medical bills, take a minute to read through this blog to gain some knowledge that can help you decide what you can do when tax time comes around.
medical bills and taxes - can you deduct them?
Becoming A Landlord? Don't Miss These 6 Tax Deductions
by Don Walters
Becoming a landlord is an excellent way to invest in your future and create a separate stream of income. But whether you're simply renting out your old home or you buy a building full of units, it's vital to make sure you take all the tax deductions you can so you don't spend all your hard-earned money on taxes. But first-time landlords often do not know what deductions are available and how to claim them. To help get you started, here's a handy guide to the 6 most commonly available deductions.
Depreciation. Depreciation helps you annually deduct a portion of the cost of the actual building and any large assets on the property. Deducting depreciation is an important way to recoup your cost. Your accountant can help you calculate the amount of depreciation that can be deducted each year. You can also find calculators on the internet.
Travel. Keep a log of your trips to do anything connected with your rental. This includes all trips to the property itself, running related errands, picking up supplies and meeting with vendors. The IRS standard mileage rate is usually better than keeping actual receipts, but you could try both methods to determine which is more valuable.
Home Office. The IRS allows you to deduct as an expense a certain portion of your home used for any business activity, including rentals. Keep in mind that this space must be used exclusively for the business and cannot be used (even a little) by you or the family for other things. If your space fits this criteria, you can use a simplified standard dollar method per square foot.
Repairs. Most landlords remember to keep invoices and receipts for large-scale repairs, but don't forget even small repairs. These small expenses add up to a large amount. Reasonable and necessary repairs are fully deductible and can include painting, appliance repairs, landscaping fixes and emergency calls.
Interest. Interest is usually a large expense that you want to be sure is included in your expenses. It usually includes mortgage interest, but you can also claim interest in loans or credit used to purchase assets for the rental or needed services.
Casualty Losses. Damage to your rental property by emergency events like fires or floods create casualty losses. These losses are usually partially deductible up to the amount of insurance reimbursement. If you suffer a (covered or non-covered) loss, be sure to include the portion you had to pay out of pocket as a deductible expense.
By knowing what receipts to keep and what to track during the year, you and your accountant can be certain that you haven't left any money on the table when tax time comes. To find out more, speak with someone like Carmines Robbins & Company PLC.