With the new tax reforms going into effect, you may be wondering what you can write-off this year. Mostly, the new reforms do not change much for property managers. To help you understand some of these new benefits, here are five write-offs not to miss this year:

 

1. Contractor Labor:

 

Businesses always write-off employee expenses, but they can also write-off contractor labor. If you hired someone for one-off jobs like fixing your roof, cleaning up your landscaping, or installing new appliances, you can write these costs off as well. Make sure that you keep all receipts for work. Even if it’s something small like $100 charge, you can still write it off.

 

2. Legal Services:

 

Property managers often have to seek legal council. Between troubles with residents and maneuvering legal codes like Fair Housing Practices, legal bills can stack up. These are all considered operational expenses. They are a necessary part of doing business, and therefore can be written off.

 

3. Interest:

 

Most property managers already write-off mortgage interest. However, property managers can write off other types of interest including credit card interest, interest on lines of credit, and interest on loans related to the property. So make sure to review all your receipts and write-off all the interest you may be skipping. Interest deductions are limited with the new reforms and any business with gross receipts of over $25 million or more at 30%. However, property owners can get around these limitations if they depreciate their property under longer periods.

 

4. Travel:

 

Most people think about travel as going out of town. However, traveling to the hardware store, between rental properties, and even picking things up for a resident party are all considered travel. Make sure that you consider the expenses related to travel like mileage and meals. There are some limitations to travel write-offs. You will need to keep a log to prove that you were traveling for a business activity.

 

5.  Marketing:

 

Marketing is part of the necessary business operations of property management. Everything from fliers to posting advertisements to postage for mailers, can be written off. Marketing is an expense piece of business and these costs can quickly add up. Writing them off on your taxes can help balance these costs.

 

These often overlooked business write-offs can help you save some money this year. Occupancy Solutions can help you find other write-offs. We understand the property management business and the complex tax laws. Contact us to learn more.