So, you’ve finally closed on your dream rental vacation home—congratulations on owning rental property! While we wish the hard work ended there, you may still need to furnish your home before you can start renting it. If that’s the case, there are plenty of options out there. One commonly used option is rental furniture.
Rental furniture comes in all shapes and sizes, from kitchen tables to California King mattresses. It’s an affordable alternative to buying permanent furniture that you’ll need to switch out often or keep in storage during half the year, and it can be even more financially beneficial during tax season. An often-overlooked perk of renting out your home to vacationers is rental property deductions, which can save you big money when tax time rolls around.
What Can You Deduct on Rental Property?
Rental property tax deductions can be a bit tricky, but the good news is there are plenty of resources to help you figure them out. One thing we know for sure can be deducted in many cases is rental furniture. If you’re using rental furniture as a business expense (when renting out a vacation home, for example), it can be classified as a landlord tax deduction. If the rental furniture is being primarily used for personal use (if you were staying at the house full-time), you most likely won’t be able to deduct it.
The deductions don’t stop with rental furniture, however. As a rental property owner, you can deduct things like home improvement purchases, property taxes, and depreciation on your rental property. We advise doing as much due diligence as possible when claiming these on your return—if you can’t find the information you’re looking for online, consult a tax professional.
Preparing for Rental Property Tax Deductions
Tax write-offs for rental property can help you maximize your profits at the end of each year. Be sure to keep records and receipts of all your purchases so you’ll be prepared to show proof of your claims when tax time rolls around. Different states and cities may also have different tax rules, so pay close attention to tax policies wherever your rental property is located.
In the meantime, if you’re looking to furnish your new rental property, consider rental furniture from Corporate Furniture Leasing. With our stylish selections, great prices, and history of fantastic customer service, we’ll make sure you’re getting what you’re looking for at a fair and affordable price.