Property value continues to rise throughout western North Carolina. New residents are moving to the area for many of the amazing benefits our region affords. There is no better time to own property in western North Carolina for now. If you have rental property, it is likely you have a waiting list for applicants and new tenants. As you prepare for the end of the year, you may find that there is quite a bit of paperwork to keep up with. However, much of it could contribute to potential tax-deductible items that can save you money during tax season. As a property management company in western North Carolina, Asheville Phoenix properties is here to help you with tips for tax season.
Tax Tips for Property Owners in Asheville, NC
Make Sure You Keep Up with All Income:
Income from rental property includes but is not limited to:
- All rental income from tenants
- Any security deposits that are not returned
- Payments for canceled leases
- Any expenses paid by tenants in lieu of rent
Remember that Rental Property Can Depreciate: While your investment may grow in equity, as a business asset, you can likely factor depreciation into the property taxes.
You May be Able to Deduct Property Taxes: Property taxes are often deductible from your income tax burden. There is typically a $5,000 or $10,000 limit to the amount of property taxes you can deduct.
You Can Deduct Repairs but Not Capital Improvements: Improvements such as additions and new appliances will have to be counted as capital improvements. However, repairs and maintenance are considered expenses. They may include:
- Repairs made to floors and walls
- Roof patches and shingle replacement
- Painting
- Repairs made to plumbing pipes
- Replacing parts within an HVAC unit or large appliance
- Anything that is patched rather than replaced
- Property management expenses
Asheville Phoenix Properties can help take the headaches out of owning rental property in western North Carolina. Many of the expenses you incur with us are tax-deductible, but in reality, the cost is negligible compared to the amount of time and energy you will save. If you would like to know more about how to benefit from property tax services in western North Carolina, contact Asheville Phoenix Properties today. We have been helping property owners in the Asheville area for decades. We have the experience and expertise to help you during tax season and all year long.