IWB Logo Horizontal

Real Estate Consultant - We Are Experienced and Highly Rated

Can I Deduct Property Management Fees on My Tax Return?

If you own rental property, you know that this comes with a lot of responsibilities. You need to take care of the property, pay your mortgage, and make sure your residents are happy. You might also be looking for a way to save money on your taxes. Being a landlord is like running your own business. Any expenses that are tied to your rental property are tax-deductible. Therefore, you can deduct your property management fees on your tax return.

Property Management Fees Are Tied To Your Business

There are numerous reasons why you might want to hire a property management company to help you take care of your rental property. Perhaps you don’t live in the local area, so it might be difficult for you to get out to your rental property regularly. Maybe you are too busy, and you do not want to handle questions from your renters that often. Regardless, your property management company will probably take a portion of your income as a fee for managing your rental property. While this can be expensive, it is a business expense. Therefore, you should be able to deduct it from your taxes.

Other Possible Tax Deductions on a Rental Property

There are other significant tax deductions you may be able to claim on your rental property as well. For example, if you have a mortgage on your rental property, you have to pay interest on it. This interest is one of the largest tax deductions you can claim, and you don’t need to worry about calculating this yourself. If you paid $600 or more in mortgage interest, the lender will send you Form 1098. This form will specify the total mortgage interest paid during that calendar year.

If you have to make repairs to your rental property, these are tax-deductible as well. For example, if you need to hire someone to repair damage to the floors, plumbing, HVAC, or electrical systems, you might be able to claim this as a tax deduction.

Finally, you need to pay property taxes on your real estate investment. These property taxes might also be tax-deductible. Keep in mind that property taxes can change from year to year, so you need to make sure you use the right number. These deductions can add up quickly, and you need to make sure you don’t leave any money on the table.

Maximize Your Revenue and Minimize Your Taxes on Your Rental Property

These are just a few examples of tax deductions you might be able to claim. If you are looking for tax advice related to your rental property, you should reach out to a professional accountant who can help you. Even though there are several possible tax deductions you might be able to claim, you must make sure you work with a professional accountant when seeking tax advice. That way, you can maximize the revenue of your rental property while minimizing potential overhead expenses.

Investment Properties – We Can Help You Reach Your Goals

How do I find discount investment properties for sale in Indianapolis, IN?

I want to buy wholesale cashflow properties near me in Indiana.

I need to find real estate listings for cheap properties from companies near Indianapolis.

How can I become a private mortgage lender in Indy now?

Front side of a wooden house
Front yard of a white house
Indianapolis Real Estate Investing - Indianapolis Real Estate Consultant
Investment Properties Indianapolis
Investment Properties Indianapolis
Investment Properties Indianapolis
Investment Properties in Indianapolis
Cream brick house with a front porch
The front yard of a nice baby blue facade house
Front yard with flowers of a brown brick house

Fishers, Indiana

Fishers, Indiana, is a city situated in Hamilton County. This city has grown rapidly during the past few decades. In 1963, only about 350 people lived in this city. By 1990, the population had grown to 7,500 people. At the 2010 census, just under 77,000 people lived in Fishers. In 2019, the population of Fishers was estimated to be approximately 95,000.

As the area has continued to grow, the culture has remained the same. Lots of people in Fishers, Indiana, like to spend time outside because of the beautiful weather. Geist Reservoir is one of the most popular attractions, as people love to go fishing and water skiing. There is also a summer concert series that takes place, with the Indianapolis Symphony Orchestra being the main attraction.

Fishers is also known for several annual festivals. This is an opportunity for people to participate in a road race, enjoy some fireworks, and watch a parade. Because of all the activity taking place in Fishers, real estate has appreciated quickly. There are lots of apartments, condos, and homes for sale, and people stick around in this district for a long time.