Are Property Management Fees Tax Deductibe?
I recently signed up a property management company to take care of my San Diego 4 bdr house for rent. They will be taking 8% commission and automatically subtract out maintainence cost at the end of each month. Are both these costs tax deductble? Will I be tax the entire rent at the end of each month?
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both should be tax deductable as long as the repairs/maintenance are not capital expenditures.
You will be taxed on the difference between the income (rental, laundry, etc.) and your expenses (repairs & maintenance, r e taxes, insurance, owner paid utilities, interest component of the loan payments, legal fees, management fees, etc.).