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Every investment property owner finds out soon enough that property ownership isn't just about collecting rent and keeping the property in shape. At EasyRentalTools we continuously add articles that help investors with both common rental ownership concepts and little-known issues that can trip up an otherwise profitable rental property. EasyRentalTools also has handy calculators to help with things like depreciation, mortgage payments, etc. Enjoy!

Mortgage Insurance (PMI) vs. Mortgage Life Insurance

Mortgage Life Insurance is for the benefit of the property owner's heirs. Private Mortgage Insurance is for the benefit of the lender.     read article

Rental Property Depreciation Examples

The first year of depreciation on a rental property will differ depending on the month first made available as a rental.     read article

Appliance Depreciation Examples

Some examples of depreciating appliance purchases for rental properties based on time of year purchased.     read article

IRS 1040 Schedule E Explained

IRS 1040 Schedule E is used by individual taxpayers to report rental property and royalty income and expenses.     read article

Are Vacant Rental Property Expenses Deductible?

Vacant rental properties must be available for rent in order for expenses to be deductible.     read article

Real Estate Repairs vs Improvements

Repairs fix something broken. Improvements add value to the property.     read article

Three Common Rental Income Mistakes

The IRS has some income reporting mistakes they look for on rental property tax returns. Here's three common ones.     read article

What Is Chattel?

Chattel is the peronal property portion of a rental property, e.g. appliances, carpets, some electrical fixtures, etc.     read article

Rental Property Cost Segregation

A rental property can have larger depreciation deductions in its first years by separating out property components.     read article

Active vs Passive Investors

Active rental property owners generally get more favorable tax treatment than do passive investors.     read article

Section 179 and Rental Property

Section 179 deductions allow for the deduction of the cost of certain qualifying equipment in the year purchased but does not apply to equipment purchased for a rental property.     read article

Buying U.S. property as a foreign buyer. (Part 1 - the purchase process)

Each state has its own buying process but most are similar. Normally the documents used are uniform from transaction to transaction and are "fill in the blank" in nature.     read article

Foreign ownership of U.S. real estate - taxes (IRS).

Rental income from a foreign owned U.S. property can be taxed at either a flat rate or after deducting expenses.     read article

Foreign ownership of U.S. real estate - common questions.

Purchase transaction methods vary by state but LLCs are most commonly used to hold real estate as a foreign owner.     read article

Is PMI tax deductible?

PMI (private mortgage insuance) is tax deductible as an expense for rental properties.     read article

Should utilities be in tenant's name?

Utilities need to be set up in a way that a tenant's failure to pay does not damage the property.     read article

Are loan points tax deductible?

Loan points (loan origination fees) have to be deducted over the life of the loan.     read article

How to depreciate appliances

Appliances (refrigerators, stoves, ovens, dishwashers, washer/dryers, etc.) for rental properties are depreciated over 5 years.     read article

How to depreciate carpets and other flooring.

Carpeting is depreciated over either five years or 27.5 years depending on how it is installed. Most other types of flooring are depreciated using the 27.5 year schedule only.     read article

Rental Property Depreciation Basics

Residential rental property depreciation in the U.S. is calculated over 27.5 years. Appliances and carpets purchased for a rental are depreciated over 5 years.     read article

Is Mortgage Life Insurance worth it?

Mortgage Life Insurance is generally expensive for the benefit received. Term life insurance is usually better.     read article

How to Analyze Apartment Building Financials

Apartment buildings are bought and sold based on financial performance. Getting accurate financial information for any apartment purchase is of utmost importance.     read article

What is Net Operating Income?

Net Operating Income (NOI) excludes some common expenses associated with investment property. It is important not to confuse NOI with taxable income or cash flow.     read article

Simple 1031 Exchange Description

1031 exchanges are widely known as a vehicle to defer taxes on real property sales but for a lot of people there is some confusion over the mechanics of how these work.     read article

1031 Exchange Tips

Care needs to be taken when choosing a Qualified Intermediary(QI) as they are holding your funds during the exchange. Exchange deadlines can also trip up the unwary.     read article

Identifying 1031 exchange properties

When identifying potential 1031 exchange properties an investor needs to understand "like kind" plus the following three rules: the three property rule, the 200% rule, and the 95% exception rule.     read article

$25,000 passive loss allowance for rental properties.

Many property owners can deduct up to $25,000 in rental property losses from other income (W-2, etc.).     read article

College Rental Tips

Renting to college students is less scary and more profitable than most people think – if you do it right.     read article

What is a CLUE Report?

A C.L.U.E. (Comprehensive Loss Underwriting Exchange) report is used by insurance companies to help determine what rate you will pay for homeowner's insurance on your new rental property.     read article
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