New Tax Regulations for Property Owners
Owning an income property can be a challenge, especially at tax time. New regulations, however, have made it a little easier when it comes to deductions for your repairs and maintenance costs, however.
The IRS has been dilligently working on a long list of new, complex regulations that will take effect on January 1, 2014. One of the most important released, especially for our Florida rental property owners, is the “safe harbor for small taxpayers”. Basically, this means that you can deduct maintenance and improvement costs instead of depreciating them over time, as long as these do not exceed certain limits. This regulation applied to condos and coops and can be applied on a building by building basis, good news for owners of multiple properties.
So, how can you take advantage of these new regulations? Well, the most important step is to carefully track all improvement and mainteance cost for each of your properties. For questions on this new regulation, contact our property management team for guidance today!
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