June 24, 2021

What rental expenses can I deduct from my income tax return?



One of the most important issues for all those who own a home and put it up for rent is how much can be deducted in the rent. Once we have an apartment for rent, it is important to declare the income obtained and know what type of concepts I can deduce. The idea is that the demonstrable expenses that you have made for the apartment to be rented are subtracted from what you have obtained for the rent. In this way it is achieved that the taxation is adjusted to what you have really benefited from the rental of the property.

There are several expenses that we can deduct for renting a home and ranging from some fees, maintenance costs, or home-related insurance. All these concepts are, at a global level, expenses that have to be made so that a home can be rented, and must be calculated to include them in the statement of income.

What expenses can be deducted

The most common expenses that can be deducted are all those related to home repairs. Even so, this type of expenses must be detailed well since only expenses related to the maintenance, repair and conservation. In no case will expenses that result in the expansion or improvement of any property related to the house be considered. The summary is that you can replace something deteriorated with a similar one.

The home insurance it could also be a deductible expense to calculate the net income of a rental home. Other fees such as IBI, the garbage collection, or expenses of community As long as the owner pays them, they can also be included to deduct taxes.

In the event that you have your home for rent and the tenant don’t pay rent and is duly accredited. For this, it must be justified that the debtor is in bankruptcy and that more than six months have passed between the first collection management and the end of the period without renewal of the credit. It is also important to note that if this amount is collected later, it must be computed as income in the following income statement.

You can also deduct taxes concepts of interest or commissions derived from the early amortization of the mortgage. In this case, it is important to point out that the main concept of the mortgage cannot be deducted, but the aforementioned related commissions.

Among the expenses that can be deducted is also the amortization of real estate. This refers to the record of the depreciation suffered by the assets, in this case the rental housing. This amortization must meet the effectiveness requirement if it does not exceed 3 percent of the acquisition cost or the cadastral value. You can also deduct expenses related to movable property that have been assigned jointly with the property.

There is another concept that can be deduced and it is that of supplies. In the event that it is the owner who pays for the supplies such as water, gas, or electricity, they can be deducted in the income statement. It would not be so if these bills are being paid by the tenants. You can also deduct the expenses that are generated with the formalization of the rental contract.

Key dates on the income tax return

There are a number of key dates in this income statement campaign that starts April 7, 2021 and that will last for almost 3 months. This is the calendar with the key days:

– April 7: start of the 2020-2021 income campaign with online presentation.

– May 4: you can make an appointment to be attended by phone.

– May 6: the deadline for submitting the declaration by telephone begins.

– May 27: you can request a face-to-face appointment at the Tax Agency offices.

– June 2: the period in which the declaration can be made in person begins.

– June 25: the deadline for declarations ends with the result to be entered with direct debit.

– June 30: end date of the rental campaign.

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