--- title: Property Managers Explain Investor Advantages at Tax Time description: Real estate investments affect investors during tax time. Learn more about the financial benefits of owning rental homes. image: https://www.hometeampm.com/hubfs/Imported_Blog_Media/for-rent.jpg --- [![Group 5068](https://www.hometeampm.com/hubfs/Group%205068.svg "Group 5068")](https://www.hometeampm.com) - [About](https://www.hometeampm.com/about/about-hpm) - [Our Company It’s been over 20 years and our goal hasn’t changed](https://www.hometeampm.com/about/about-hpm) - [Our Team Meet the Home Team Property Management Team](https://www.hometeampm.com/our-team) - [Why Choose Us No matter your property management goals, we will get you there](https://www.hometeampm.com/why-choose-us) - [Careers Take a look at our open positions and feel free to submit an application if your experience is a match](https://www.hometeampm.com/about/about-hpm) - [Vendors We are continually seeking out qualified, professional vendors to fulfill goods or maintenance contracts](https://www.hometeampm.com/about/vendor-relations) - [Connect With Us Reach out to our expert team to see how we can assist you with your property management needs](https://www.hometeampm.com/contact-us) - [Testimonials Read HomeTeam Property Management client testimonials here](https://www.hometeampm.com/testimonials) - [MANAGEMENT SERVICES](https://www.hometeampm.com/management-services) - [Residential View our residential property management services](https://www.hometeampm.com/management-services/residential-management) - [Commercial View our commercial property management services](https://www.hometeampm.com/management-services/commercial-management) - [Marketing View how we market your property to prospective tenants](https://www.hometeampm.com/management-services/marketing) - [Accounting We specialize in complete financial services for our property owners](https://www.hometeampm.com/management-services/accounting) - [Maintenance Property maintenance is one of the most important aspects of maximizing your investment](https://www.hometeampm.com/management-services/maintenance) - [Leasing Our leasing department utilizes the latest in application and credit screening procedures](https://www.hometeampm.com/management-services/leasing) - [Free Rental Analysis Get a free rental valuation of your investment property](https://www.hometeampm.com/management-services) - [Get a Quote Learn how much it would cost to manage your property](https://www.hometeampm.com/management-services/getting-started) - [OWNERS](https://www.hometeampm.com/owners) - [Marketing Your Property Learn how we market your property to ensure the maximum exposure to qualified buyers](https://www.hometeampm.com/owners/marketing-your-property) - [Renting Your Property We provide you with guidance on how to ready your property to compete in the ever-changing rental market](https://www.hometeampm.com/owners/renting-your-property) - [Maintaining Your Property The best approach to maintenance is preventative maintenance, and this is HomeTeam Property Management policy](https://www.hometeampm.com/owners/maintaining-your-property) - [No - Eviction Guarantee We are so confident in our tenant selection process that we include a No-Eviction Guarantee](https://www.hometeampm.com/owners/no-eviction-guarantee) - [Free Rental Analysis Get a free rental valuation of your investment property](https://www.hometeampm.com/owners) - [Owner Portal Login Sign-in to monitor your account](https://hometeam.appfolio.com/oportal/users/log_in) - [Get a Quote Learn how much it would cost to manage your property](https://www.hometeampm.com/management-services/getting-started) - [TENANTS](https://www.hometeampm.com/tenants) - [Rental Search Find your next place to live in San Diego](https://www.hometeampm.com/properties) - [Tenant Portal Login Sign-in to monitor your account](https://hometeam.appfolio.com/connect/users/sign_in) - [Pay Your Rent Paying rent on time has never been easier](https://www.hometeampm.com/tenants/pay-your-rent) - [Future Tenants Important information for tenants wanting to lease a property from HomeTeam](https://www.hometeampm.com/tenants/future-tenants) - [Move Out We want your move-out to be a pleasant and successful one](https://www.hometeampm.com/tenants/move-out) - [Notice To Vacate Moving out? 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But it’s not that monthly rent check that really matters to the long-term real estate investors with rental properties in San Diego County, California. With homes appreciating rapidly, investors think about how real estate investments affects their financial situation at tax time. Owning a rental property in a hot rental market such as San Diego County gives investors short-term passive income as well as long-term gains when it's time to sell. People who fall within certain income guidelines claim rental losses of up to $25,000 that directly reduce taxable earned income as long as they participate in landlord decisions. To minimize gains from a home tax perspective, it’s prudent to use all the legal deductions and capital cost allowances. **Reducing a big tax bill when you sell** One hidden tax benefit that some landlords don’t know about is the capital cost allowance that reduces your tax liability when you sell. When working with property managers in the San Diego rental market, ask about potential rental properties that will bring in a decent market rent now as well as a home that goes up in value over the long-term. According to an [article](https://turbotax.intuit.ca/tips/tips-for-renting-out-your-house-6375) by Turbo Tax, it’s not always a tax burden when a rental home appreciates in value. Investors amortize the house at 4-percent a year. Keep in mind an investor can’t deduct the cost of a items that get worn out over time such as furniture or equipment to use managing or maintaining the rental home. Instead, an investor claims certain expenses over several years as determined by the IRS guidelines. The deduction is the CCA or capital cost allowance. **Figuring out whether you qualify for deductions** When it comes to deducting mileage to and from your rental properties as well as other expenses, it’s not the same for every tax payer. A [piece](https://www.usatoday.com/story/money/personalfinance/2014/04/01/tax-qa-rental-property-losses/7154811/) by USA Today points out that people with an adjusted gross income above $150,000 don’t qualify for some deductions. A special rules lets some taxpayers deduct up to $25,000 in losses from their earned income even though rental activities are typically “passive.” In this case, it’s not about whether you screen the tenants, enforce the lease or maintain your rental property. It’s a matter of qualifying for the special rule phased out when an investor makes between $100,000 and $150,000. When you hire a property manager to oversee your rental property or several properties, you are still an active participant, according to the IRS. **Staying meticulously organized** Once you own a rental property, stay organized by keeping every receipt and logging the miles you drive to get to your rental. Keep receipts for any improvements you make as well as money spent on contractors and technicians. In some cases, your receipts will prove you have deductible expenses for the property's maintenance. In other cases, the receipts prove depreciating assets. A taxpayer deducts some of the assets each year for several years. For example, replacing broken door knobs count as an expense deducted with your home taxes this year. However, upgrading with all new, fancier and more expensive levers is an upgrade viewed as a depreciating improvement. For help figuring out the gray areas, talk to a tax professional. Most tax professionals will fill you in on the secrets for why owning a rental property is a great financial move. At Home Team Property Management, we help you get all of the tax deductions including the fee for hiring a property management company. Talk to us about how to enjoy the financial benefits of owning rental homes. The financial edge becomes clear at tax time for most real estate investors. For more tips about getting the most out of your real estate investments, please contact us today. ![icon](https://www.hometeampm.com/hubfs/Home_Team_2022/Group%205168%20(1).svg) #### SUBSCRIBE TO RECEIVE THE LATEST NEWS Stay in the know with the latest news form the leaders in property management ### Subscribe Here! ### Popular Posts #### The Great Pet Debate: To Allow Pets In Your... | HomeTeam Property Management | 30 January 2020 When you become a landlord, it is up to you to decide what you will... [READ FULL POST](https://www.hometeampm.com/blog/great-pet-debate-allow-pets-in-apartment) #### What Counts as a Rental Home Maintenance... | HomeTeam Property Management | 11 November 2020 Tenants are often shy about calling for repairs from their landlords... 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