Benjamin Franklin famously noted that nothing is certain in life except for death and taxes. Yet on a more positive note, we can all be certain of tax deductions. For landlords, especially those managing midterm rental properties, understanding and maximizing available tax deductions can be a game-changer. Midterm rentals, which cater to tenants looking for stays of a few months to a year, often incur unique business expenses and renovation costs that can be strategically deducted. Let's explore the tax deductions available to landlords focusing on business expenses, rental improvements, and benefits for pass-through businesses, with specific considerations for those operating in the midterm rental market.
Landlords who keep meticulous records of their expenses should be able to deduct business-related expenses including:
Learn more about business-related expense deductions for landlords.
For landlords looking to make improvements to their rental properties, there are two pieces of the tax code to take note of:
Learn more about Section 179 and Bonus Depreciation and how they impact rental renovations.
Landlords who own their rentals in pass-through businesses, such as LLCs, S-corps, and partnerships, can potentially deduct 20% of their business income, which could have a significant impact.
Learn more about the 20% pass-through deduction and if you qualify.
For more tax deductions and tax help, check out our Tax Page. For more resources on managing your rental property, check out our Investor Resources.