Making Health Insurance a Rental Expense

Costs to insure rental property are deductible, so depending on how you structure your rental business, you may be able to cover your life and medical insurance as part of the rental business.

Structuring your rental property as a Limited Liability Company (LLC) may permit you to deduct these costs for you and your family, but you should talk to a tax advisor to find out more.

You might want to refer with IRS Publication 535 to learn more about business expenses.

This blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies is brought to you by SimplifyEm Pay Rent Online and Property Management Software

Welcome back! What did you think of our Property Management Software? Are you subscribed to our feed and receiving email updates?

You might also want to read:

1. 2010 Condo Rental Property Tax Deduction Tips for Landlords, Real Estate Investors A condominium is most often a dwelling unit in a multi-unit building, but can also take other forms, such as a townhouse or garden apartment. If you own a condominium, you also own a share of the common elements, such as land, lobbies, elevators, and service areas. You and the......
2. What Not to Deduct as an Insurance Expense Not all insurance costs can be deducted as a rental income expense, like some private mortgage insurance, or credit life insurance. Some insurance costs get added back to the basis for depreciation, like Title Insurance, which is found on line 1108 of the property’s settlement statement. ......
3. Deductible Start-Up Expenses Business start-up costs are generally capital expenditures, but you can elect to deduct up to $5,000 of business start-up costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total start-up costs exceed $50,000, and the remaining cost must be amortized. Start-up expenses......
4. 50% Rule for Meals & Entertainment – Landlord Tax Deduction | Business Expense When traveling away from home on business, you may incur expenses for meals and entertainment. You can deduct 50% of meal and entertainment costs incurred when traveling locally, overnight, or long distance for your rental activity. So if you get hungry driving across town while going to pickup the rent......
5. Actual Expense Method – Auto Expenses You Can Actually Deduct | Vehicle Deduction Tax Tips Vehicle expenses paid exclusively for rental activity can be fully deductible. Using the actual expense method instead of standard mileage might be more beneficial if your vehicle incurred a lot of expenses during the year. Usually the largest vehicle expense that you can deduct is depreciation, which allows you to......

This entry was posted on Tuesday, June 2nd, 2009 at 9:57 am and is filed under Schedule E. You can follow any responses to this entry through the RSS 2.0 feed.