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Is your rental a write off?

||Is your rental a write off?

It’s tax season.  We’ve all seen those TurboTax ads on TV where there’s a person that thinks it takes a genius to do one’s taxes.  When the genius comes on, they just ask the app the question the person has, and the app answers the question.  If you’ve ever done your own taxes, you know it’s usually not that easy.  

Well, for our part, we like to make the process as easy as possible.  Don’t mistake this blog as legal, or tax-professional advice.  However, from a friendly landlord to a friendly tenant, here are a few starting points to get your filing going. At least it may help steer you in the right direction.

One big question:  Is the rental I’m living now, or that I was living in, a tax write-off?

Under any circumstance, you’ll want to keep your receipts, or copies of checks or credit card bills used to pay for the rental.  Just like the gas for you car, your rent, and lodging expenses can play a major role in your work-life.  As such, there’s a good possibility that you’re looking at a hefty write-off!  (See this site for more info.)

How it can work.

In many instances there is a portion of rent that is tax-deductible based on the amount of time you might spend working from that space.  Home offices are on the TurboTax “Top 10 Deductions You’re NOT Taking” list. If you work from the temporary living space that you rent, it is likely a write-off expense that you should take to your accountant.  This applies to many self-employed individuals

Another instance might include paying for lodging in two locations at one time.  As in, if you are paying rent in a temporary space to fulfill a specific contract for a period of time, that rent might be deductible.  Especially if this rent is in addition to a home you own, or rent.  It’s important to know what the policies are where you work in an instance such as this.  It could be that a small increase in pay was meant to provide you with the additional income for the cost of a rental.  However, in some instances, you may still be applicable for this kind of write-off.

Some restrictions may apply.

In the case that you are relocating but your business hasn’t changed locations, you may not be eligible to write-off of your rent.  Also, if the rent is paid for by the company you work for, you may not be eligible.

Conclusion?  

Be sure to bring it up with your accountant, or whoever is helping you file your taxes.  If you’re filing on your own, we recommend consulting with a professional in these matters, because you may be missing out!  No one should miss any opportunity to get the benefits they deserve.

2016-12-01T14:37:40+00:00 News and Updates|