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Tax Deductions for Renting Tenants

Tax Breaks for Renters are invisible at best to the necked-eye. And if you rent an apartment or house, you probably wonder why you can’t get some type of tax break for your monthly rent payments. Rent Agreement image

If you pay property taxes as part of your lease agreement, these taxes are deductible on your federal tax. You can also deduct the cost of damage of your property because of fire, theft or other accidents. Some states also offer renters credits or deductions.

Federal Deductions

Most renters are disappointed that they can’t deduct their rent payments from federal income tax. However, if your lease requires you to make property tax payments, you can deduct that portion of your rent or any property tax you pay directly. You can also deduct property losses from fire, theft or flood, as long as you aren’t reimbursed for those losses by your insurance provider.

Business Use Home-Office-030716

If you work from home, expenses related to your business are deductible from federal and state taxes. The home office deduction is complicated. If you use only part of your home for business, you must measure the exact square footage of that area. You can deduct the amount of rent represented by the portion of your home used for business, as well as a prorated portion of utility payments like water, power, heating and gas.

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Ask Chuck Malone to Help You Find a Rental Home.  (480) 329-7489 – Call or Text

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Renters Credit

Some states offer a renters tax credit, which usually represents an amount that the state has determined to be the portion of the rent that the landlord collects in order to pay property taxes. New Jersey allows renters to claim a credit based on the portion of their rent used to pay property taxes, within certain limitations. Renters may receive up to $750 in tax credits depending on income and tax filing status.

Refunds and Deductions

Single renters with incomes of up to $53,540 and households with dependents and income up to $75,440 may file for a renter’s refund in some states. The refund is mailed to the taxpayer after all filing requirements are met. Renters (in Indiana) who do not live in government or nonprofit-owned housing can deduct up to $3,000 of their rent from their state income taxes.  (But is it worth moving to Indiana if you live in Gilbert, AZ?)

More on this article at: http://www.trulia.com/blog/can-renters-claim-home-office-taxes/

 

TAX BREAKS FOR RENTERS MAY EXIST… but in the long run your best route to wealth is HOMEOWNERSHIP.

Graph Benefits Homeownership over Renting

 

 

 

Renters…If you think it is time to start on your pathway to homeownership… Give CHUCK MALONE @ JK REALTY a call today!!  (480) 329-7489

 

landlord Rent Increases

 

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If you want to learn about some financing options, or if you’re looking to get pre-qualified, contact Marc Trejo at Sun American Mortgage Company: 602-743-4885.

CLICK HERE

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