I own several income properties in Aventura, Florida. Can you explain to me my income tax responsibilities?
Yes, it is that time of the year again when the government comes knocking on our doors requesting ( very politely I will add) that we pay our income taxes.
Let us look at tips on your Aventura real estate rental real estate income,
- All rental income must be reported on your tax return.
- The general expenses associated with ownership of the property, i.e., new roof, air conditioning unit or as example flooring can be deducted, but must be noted. Keep those receipts!
- You are required to include your gross income on all amounts you received as rent.
- The law states that you must report income on ALL your income/investment properties.
- Advance rents are also included in your reporting. Examples of this include the last payment attached to a lease.
- Security deposits are NOT included in your Aventura, Florida real estate income tax reporting.
- If you keep part of the security deposit, say for repairs, this must be reported.
- If funds are received when a tenant wishes to cancel a tenant agreement (buy out their lease) , these monies are considered income.
- Say the tenant pays an expense, perhaps a plumbing invoice, this is considered income and must be declared.
- If your tenant pays for a utility cost which is not part of the tenant agreement and then, deducts the payment from the rent, you must declare this as rental income.
- Any bartering that occurs between landlord and tenant, say the tenant paints the unit instead of a rental payment, add this to your income.
And finally....If you enter a lease with the option to buy, any income generated must be reported.
I highly recommend you speak with a certified account regarding the payment of your
Aventura Florida real estate rental properties and the income taxes due.