Improve your cash flow by thousands of dollars with accelerated depreciation. Identify your property's short life assets, and by accelerating your deductions, you can save money on taxes.

People normally depreciate their properties using a straight-line deduction over 27.5 years or 39 years. Usually a property has assets inside the building like refrigerator, which can be depreciated over 5 years. Assets outside of the property, like the fence, landscaping, etc can be depreciated over 15 years. When you identify those assets and depreciate them separately, you are taking deductions sooner. The larger depreciation deductions can improve your cash flow by thousands of dollars.

For more information about how you can save money using accelerated depreciation, try DepreciateEm from property management software maker TReXGlobal.com

Do not include a security deposit in your income when you receive it if you plan to return it to your tenant at the end of the lease. But if you keep part or all of the security deposit during any year because your tenant does not live up to the terms of the lease, include the amount you keep in your income in that year. If the security deposit was used for any repairs, make sure that you deduct these expenses.

Most rental property owners, who actively manage their properties claim tax losses, even when they are making a profit. You can deduct up to $25,000 of rental losses on your tax return if your adjusted gross income is less than $150,000.

If your adjusted gross income is between $100,000 and $150,000, you can deduct up to ($150,000 - Your Income)/2. So if your AGI is $120,000, you can deduct up to $15,000 (150k - 120 k)/2. If AGI is over $150,000, then the loss cannot be taken.

Any costs incurred by you in managing and keeping up your rental property are generally deductible. If your property is vacant, you can still deduct expenses while you have it available for rent or is under repairs. You can deduct the following expenses from your rental income.

• Loan, Taxes and Insurance (Loans, Property Insurance, Property Taxes, Rental Income Tax, Hurricane Insurance, Earthquake Insurance, Flood Insurance, Umbrella Insurance, Credit Card Interest)
• Advertisement, Utilities and Travel (Newspaper Ads, Internet Ads, Yellow Page ads, Phone, Gas, Electric, Internet, Cable TV, Water, Garbage, Auto and Travel Expenses)
• Repair, Maintenance and Supplies (Handyman, Plumber, Painting, House Cleaning, Gardner, Snow Removal, Trash Removal, Office Supplies, Postage, Cleaning Supplies)
• Professional Fees (Property Management Fees, Leasing Fees, Engineering Fees, Attorney Fees, Tax Preparation Fees, Training, Seminars)
• Miscellaneous Expenses (HOA Fees, Bank Charges)

Repairs keep property in good operating condition and do not add to the value of property or prolong its life. You can deduct the full cost of repairs that are necessary to keep your property in good working condition, like fixing locks and painting rooms. Repainting your property inside or out, fixing gutters or floors, fixing leaks, plastering, and replacing broken windows are examples of repairs.