If the home you’re looking to buy on Cape Cod is going to be used for investment purposes, be sure you’ve left no stone unturned when it comes to rental property tax deductions! Home improvements, depreciation, travel costs, association fees. These are just a few of the expenses that are deductible with investment property yet not on your primary home. Hence, you may not be familiar with them if you are a new investment property owner.
But be careful because the rules can be tricky and some deductions may be limited based on your income. To be sure you’re taking every deduction to which you’re entitled and none of those to which you are not, be sure to consult your tax preparer. If you don’t have one and you own or plan to own investment property, you’d be wise to consult one. Robinson Financial Solutions in Brewster can assist you with all your tax and financial planning needs. And best of all, the cost of having them prepare your Schedule E is most likely deductible!