By Marie R. Ferguson
Owning a vacation rental business can be very exciting and prosperous. Yet, when it comes to filing taxes, many owners are unsure of what is a taxable expense. Many of these expenses are overlooked and becomes a costly event to the taxpayer. To keep this from happening to you, remember to save every receipt for every item or service that you purchase for your rental property. Yes, everything!
If you're filing a US tax return and you have rental income, you'll need to include a Schedule E tax form with your returns. If this is your first time preparing a Schedule E, here are some tips to help get you organized.
1.) Gather your property information including the purchase price, the year you bought the property, any points you may have paid, mortgage interest, mortgage insurance, and real estate taxes you paid for that year.
2,) Next, total all of your rental income minus the security deposits held in escrow and any refunds.
3.) Add all of your paid receipts for labor and materials for any repairs and maintenance performed on your rental property.
4.) If you own a condo, then total your condo fees for the year.
5.) Total your property management and housekeeper's fees.
6.) Auto Expenses: Gas for traveling to and from your rental property to check on it, meet contractors and housekeeper. Record repairs and general maintenance costs.
7.) Travel and Meals: Auto expenses and meals for the purpose of getting a booking or for traveling to check on your rental or to meet with your renter.
8.) Missing deductions can cost you money. Using The Mobile Bookkeeper will help you track all of your rental income and expenses as you go along throughout the year. At year end, all you need to do is print out summary report and all your numbers are calculated for you.
9.) Include all of your supplies. For example: Every time you buy paper napkins, or toilet paper for your rental record these purchases for a tax deduction. If you provide your renters with shampoo, soap, laundry detergent or any other type of cleaning supply, it can be a tax deductible event.
10.) Snow plowing, landscaping are expenses that some people tend to forget to include.
11.) Also, the utility bills, cable, telephone or cell phone bills, fax line.
12.) Home Office: paper, postage, office supplies, office rent, new computer, fax machine, desk and chair, and desk lamp.
13.) Donating your vacation home as a charitable gift is a deductible expense.
14.) Advertising expenses, newspaper, online sites, internet service, business cards.
If you need any additional information, please contact Marie at her site shown below.
Marie R. Ferguson, author of "Breaking all the Rules: How to Rent Your Vacation Home in ANY Market". This book will teach you How to Avoid the 10 Biggest Mistakes when renting out your home. Marie is an expert landlord of vacation rentals with over thirty years of experience in the financial and real estate industry. For more rental tips and for The Mobile Bookkeeper and Free Trial listing on http://www.DreamAwayRentals.com
Article Source: http://EzineArticles.com/?expert=Marie_R._Ferguson
http://EzineArticles.com/?Most-Overlooked-Tax-Deductions-for-Your-Vacation-Rental-Business&id=6875753
