Home Office Tax Deductions for Landlords

If you are like me (and most landlords, for that matter) you probably manage your rental properties from a home-based office.

One benefit of such an arrangement is the expenses incurred are tax deductible, as are certain home depreciation expenses. If you are a new landlord setting up a home office, you will likely need the following items to run your business:

• Computer and multifunction printer (with fax and copier capabilities)
• Internet access
• Fire-proof file cabinet or other paper storage device
• Separate telephone line or cell phone number for tenants to call
• Cabinet, workshop or storage space for maintenance equipment and supplies, such as lawnmowers, snow blowers, trimmers and tools for the rental units

Whether you are a new or seasoned landlord, be sure to establish a schedule to back up computer information on a daily or weekly basis. To lose critical financial and tenant information in the event of a computer crash can cause serious problems financially and with the IRS.

Consider storing this back-up data at an off-site location, such as a safe deposit box. If you suffer from a fire or a break-in, all of your tenant, financial and tax records will be safe in a separate location.