Are you ready to maximize your rental property tax deductions before the year ends?
The holiday season is finally here. However, for smart property investors, December isn’t just about wrapping gifts—it is about wrapping up your finances. Every owner in the Coastal Empire needs to review their expenses before the clock strikes midnight on December 31st.
If you own a vacation rental in Tybee Island, Savannah, or Hilton Head, scheduling necessary expenses now can significantly lower your 2025 tax bill. To help you succeed, here is Coastline Concierge’s essential checklist. Use this guide to capture every available write-off before the new year begins.
1. Distinguish Repairs vs. Improvements for Tax Deductions
First, you must understand the difference between a repair and an improvement. This distinction is the key to maximizing your rental property tax deductions.
Deductible Repairs (100% Write-off)
Repairs keep your property in good working condition. Generally, you can deduct 100% of these costs in the year you pay for them.
- Examples: Fixing a leaky faucet, patching a roof leak, or replacing a broken lock.
- Your Action Item: Schedule these now! Contact Us Today to coordinate plumbing, electrical, or structural fixes immediately.
Capital Improvements (Depreciated)
Unlike repairs, improvements add value or extend the property’s life. You must capitalize and depreciate these over several years.
- Examples: Replacing the entire HVAC system or a full kitchen remodel.
- Your Action Item: If the project is major, we recommend you consult the IRS Tangible Property Regulations or your CPA.
Coastline Concierge Tip: We classify every repair carefully. Therefore, if you have nagging minor issues, schedule them this week. This ensures they appear on your 2025 ledger.
2. Schedule Your Deductible Services Now
Routine and recurring services are the easiest way to boost your rental property tax deductions. Consequently, you should ensure you pay for these annual services by December 31st.
A. Preventative Maintenance
- HVAC Service: Schedule tune-ups for your heating and cooling systems. This is crucial for our humid coastal climate.
- Pest Control: Did you know pest control fees are fully deductible? Pay your year-end invoice now.
- Gutter Cleaning: Ensure you pay for seasonal gutter cleaning and landscaping before the year ends.
B. Cleaning and Inventory
Supply Restocking: Buy consumable inventory for your rentals now. This includes linens, towels, toiletries, and light bulbs.
3. Leverage Your Professional Management Fees
Working with a professional partner like Coastline Concierge pays dividends twice: once in peace of mind, and again at tax time.
Advertising: Finally, costs for listing photography and virtual tours are 100% deductible.
Management Fees: You can fully deduct your management and leasing fees. We provide clear, itemized annual statements for easy filing.
Professional Services: Additionally, fees paid to CPAs, attorneys, and contractors are deductible business expenses.
Concierge Services: Do you use our Home Watch or Errand Runner services? These costs are often deductible because they are necessary for business operations.
🔑 Action Plan: What to Do THIS WEEK
The window to finalize payments with vendors is closing rapidly. Therefore, do not wait until the last week of December.
- Review Your 2025 Expenses: Identify any invoices for repairs or maintenance that have not yet been paid.
- Contact Us Immediately: Call your dedicated Coastline Concierge manager. Let us know what maintenance items you need to schedule and pay for before Dec 31st.
- Book Your 2026 Management: If you are unhappy with your 2025 property management company, make the switch now. Our fees—and superior service—start immediately.
Disclaimer: Coastline Concierge are experts in property care and coordination, not licensed Certified Public Accountants (CPAs). This guide is for informational purposes only. Please consult with your tax advisor or CPA to ensure the proper treatment of all income and expenses related to your Tybee, Savannah, or Hilton Head rental property.