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Services for Rental Property Owners

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If you rent your Hawaii vacation home for more than 14 days a year, you must report all of the rental income because the IRS now deems it as a rental property. In this case, you will then qualify to deduct some offsetting expenses. But every year, millions of property managers and landlords pay more taxes on their vacation rental income than they have to. Why? Because they fail to take advantage of all the tax deductions available for owners of rental property.

At Tax Services of Hawaii we specialize in helping residential property managers save money on taxes. We make sure our clients are keeping proper tax records and taking advantage of all available real estate tax credits while avoiding both IRS and Hawaii GET scrutiny. We understand that each situation is unique so we take the time to understand how a variety of elements can affect your tax liability, then devise a plan to ensure you never pay more taxes than you owe on your vacation rental.

Rental real estate provides more tax benefits than almost any other investment. Tax Services of Hawaii will help you get the most out of your investment so you can benefit from your property for years to come. We offer a free consultation for owners of vacation rentals including residential property managers, investors and property management companies. Call (808) 529 1040 now to learn more.

Our tax and accounting services for vacation property managers include:

  • Strategic tax planning
  • General Excise Tax preparation
  • Outsourced bookkeeping
  • Rent roll preparation and posting
  • Analyze and apply cash receipts to tenant accounts receivable
  • Financial statement preparation and review

Facts about taxes on rental properties:

  • You can rent your vacation home for up to 14 days a year and pocket the rental income without being required to declare it on your income tax return.
  • Landlords can greatly increase the depreciation deductions they receive the first few years they own rental property by using segmented depreciation.
  • Careful planning can permit you to deduct, in a single year, the cost of improvements to rental property that you would otherwise have to deduct over 27.5 years.
  • Most small landlords can deduct up to $25,000 in rental property losses each year (phased out based on your AGI).
  • A special tax rule permits some landlords to deduct 100% of their rental property losses every year, no matter how much.
  • People who rent property to their family or friends can lose virtually all of their tax deductions.
  • You can rent out a vacation home tax-free, in some cases
  • You can rent your vacation home for up to 14 days a year and pocket the rental income without being required to declare it on your income tax return.