taxes for landlords

Easy Ways To Reduce Taxes As a Landlord

When buying our own home, many of us look forward to a big tax write-off. We are so interested in knowing How To Avoid Landlord Taxes that we don’t even realize that when we buy an investment property, paying tax is more favorable for us. 

Landlord taxes

In this blog, we will cover simple ways to help us know How To Avoid Landlord Taxes while you plan to buy real estate that is intended to be treated as a rental property. This includes the following:

  • Be An Active Investor
  • Trade-In, Trade-Up
  • Calculate Depreciation
  • Direct Cost Deductions

How to avoid landlord taxes

If you are new to the property business, our Accountants for landlords can help you to reduce your taxes. Contact now!


Be An Active Investor: 

If you are a passive investor, you better forget to know How to avoid landlord taxes. As the chances are that you will only deduct passive losses from your rental income. If the list of passive losses is higher than the gained income from rents, and depreciation is also added to it. It is not possible to deduct from other resources in the case of passive investors. 

On the other hand, investors that are actively involved in the management can get unlimited benefits from deductions and later that can be used for earned income. 

You have to prove to HMRC that you are a qualified real estate professional. In case an investor cannot qualify for the required criteria but is still an active investor, he can deduct as the compensation of any losses claimed. 


Trade-in, Trade-up:

It is allowed for the property owners to have an exchange of any part of the real state to get exchanged with another and that too without paying the capital gain tax. Mostly we think that the investor with a broader outlook, in the long run, will not opt but there are certain exceptions. 

A common saying by many investors is “Defer till you die” without an actualization that tax is the base of building on for high market value. So to know how to avoid landlord taxes will be beneficial but in its limitations. 

Whether you are looking for business valuation or tax guidance, we have solutions for all your business needs, contact us now!


Direct Cost Deductions:

In case an investor owns the property, he/she can deduct the cost that was spent on maintaining the property. Also, the marketing cost can be deducted as well. Some other deductions that are possible in the process include the following. This is the way you know how to avoid landlord taxes.

  • Cost of advertisement
  • The fees paid to the professionals
  • Amount spent on maintenance and repairs
  • Utilities
  • Taxes and insurance
  • Mortgage Interest

For a professional elaborated guide, get in touch with our landlord accountants at your earliest!


Calculate Depreciation:

There is this famous concept that assets lose their value over time and depreciation is calculated under the same theory. As they say, furniture and other households lose their value after five years and become virtually worthless. 

In real estate, the depreciation is the same but the properties do not wear out. In this case, the value of the land can be deducted from the cost that you paid. This could be another way to know how to avoid landlord taxes and making it practically possible.



To sum up the discussion we can say that the ways to reduce landlord taxes are simple and come with their own kind of complexity if not treated professionally. We hope these simple and easy ways to reduce the landlord taxes helped you to develop a better understanding. If you need more information, the professional help of our landlord accountants is just a click away

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