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.

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1. Deductible Insurance Expenses You can deduct most types of insurance that deal with your rental property, like Homeowner’s Insurance, Casualty Insurance, and Private Mortgage Insurance. Other common expenses include coverage for fire, theft, flood, and liability. If you have employees, you can even deduct the cost of their health and workers’ compensation insurance. Just be sure that the expense is ordinary [...]......
2. 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 deduct the value of your vehicle [...]......
3. Home Office Expense Tax Deduction | Landlord Guide for Business Expenses Expenses for your home office or workshop used to manage your rental property are considered deductible expenses only if you used a portion of your home exclusively and on a regular basis as your principal place of business. Even your garage may be considered storage for your tractor to cut the grass or to hold furnishings [...]......
4. Sold Investment Property | Minimize Capital Gains Tax, Deduct Closing Costs You can minimize the taxable gain from the sale of a property by accounting for your sale expenses, like closing costs. Closing costs that you need to consider can be found on the property’s settlement statement. To minimize your taxable gain from the sale, first locate the Contract Sales Price (Line 401) on the settlement statement. [...]......
5. Closing Costs, Property Depreciation | Maximize Real Estate Tax Deductions You can maximize your property basis by accounting for closing costs, which will save you more money because you get to deduct more than you already do (assuming you don’t already account for closing costs). By increasing your depreciable basis, you enable yourself to take larger depreciation deductions, which results in a lower taxable liability (the [...]......

This entry was posted on Tuesday, June 2nd, 2009 at 9:54 am and is filed under Schedule E. You can follow any responses to this entry through the RSS 2.0 feed.