On August 1, 2023, Governor Hobbs signed SB 1131, a bill that prohibits a city, town, or county from levying a tax on residential rentals. As of January 1, 2025, TPT may no longer be charged on a residential rental by a city, town, or county or collected by a residential property owner. Arizona has long …
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Tax deductions let business owners offset business costs when filing their income taxes. Deductions lower the business owner’s taxable income, thereby lowering their overall tax bill. As any landlord knows, owning a rental property involves plenty of costs! Fortunately, many of those expenses have a corresponding tax deduction. To avoid paying higher taxes than necessary, …
Our review on a worthwhile read for real estate investors –particularly beginners. Written by Amanda Han and Matthew MacFarland, CPAs and real estate investors, The Book on Tax Strategies for the Savvy Real Estate Investor shares valuable advice and insight on the tax angle of real estate investing. Written in an engaging, lets-have-coffee style, Han …
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Are you paying more taxes on your rental income than you should? Well, that depends on if you’re taking advantage of all the deductions allowed on real estate investment income. Most rental property owners are familiar with the primary deductions that landlords can claim to lessen the amount of income tax paid on their profits. …
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In previous articles, we discussed tax deductions for landlords and repairs vs. improvements. Today we‘ll offer insight into ‘safe harbors.‘ The IRS offers three variations, which can help landlords sidestep the “Is this a repair or an improvement issue.“ Safe harbor for small taxpayers Safe harbor for routine maintenance De Minimis safe harbor Safe Harbor for Small Taxpayers (SHST) The SHST permits …
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Maintaining your rental property is a given. From minor repairs to major renovations, these repairs and improvements can be deducted from your taxable income. The key is knowing the difference between a repair and an improvement. Repairs can be fully deducted in the year you experienced it. Improvements, however, must be depreciated over multiple years. …
The many benefits of owning rental properties are well known. Unlike other investments, real estate has various avenues for profitability such as: monthly cash flow, property appreciation, equity growth from mortgage paydown, and the ability to use depreciation to reduce tax expenses. ALL GOOD THINGS! Of course, it’s important to properly report income, expenses and …
Continue reading “Tax Time – Your Rental Property Meets April 15th”
What is Transaction Privilege Tax? Transaction Privilege Tax (TPT) is a tax imposed by many cities in Arizona for the privilege of doing business. The tax is charged based upon gross revenue and is collected by the Arizona Department of Revenue on behalf of the cities. This tax also applies to Residential Rentals and is …
