Posted by: Patrick
The job of a landlord can be pretty rewarding if they are on-site permanently, but it can be difficult to manage a full-time job and a property at the same time. In most cases, a landlord would not have enough time in his hands to maintain his property properly. This is where a property management service can offer advantages, including some advantages related to taxation.
Owners get tax write-offs
Did you know that the property management fees were tax deductible? Property management services are an example of tax-deductible services which can help lower your tax bill. If you have all the statement and an invoices issued by the property management firm, you may claim the cost of services as well.
You get your tax paperwork organized
Organization is one of the key roles of a property management firm, whether it is the organization of the property maintenance schedule or the organization of all the paperwork between landlord and tenant. The latter can be very helpful when you pay taxes and file your returns, especially if you are not an expert in organizing or bookkeeping yourself. If you feel you missed out any deductions or credits during the course of your paperwork, your property management firm might be able to help you out.
You get to avail certain tax benefits that only an expert can offer
No matter how many years you manage your property, there are some things that can only be provided by the expertise of a professional property management service. A good management firm can increase any eligible tax deductions that may have been overlooked by the landlord. An example of such deductions includes energy-efficient upgrades to the property.
March 08, 2013 at 6:17 pm