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2024 tax season tips for landlords

A crucial period for investors to assess financial standings

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For many landlords, March can be a stressful time due to the upcoming deadlines to file annual tax returns. The year prior to April is a crucial period for property investors to assess their financial standings, ensure compliance with tax regulations, and take advantage of available tax-saving strategies. As a housing provider, understanding the intricacies of the tax code and how it impacts landlords can significantly impact your bottom line. 

Deductions for Rental Property Owners

One of the advantages of being a landlord in the United States is the ability to deduct numerous expenses related to the rental which can significantly reduce your taxable income. Do not overlook this benefit as it is the federal governmentā€™s incentive to promote the development and ownership of rental property. Schedule E of the federal form 1040 organizes the financial results of the rental property from the tax year and is how you report it to the IRS. 

If you qualify as a real estate professional under IRS guidelines, you may be able to deduct rental real estate losses against your other income, reducing your overall tax liability.

Here are some key deductions to consider:

Mortgage Interest: Landlords can deduct the interest paid on mortgage loans for rental properties. Keep detailed records of your mortgage payments and ensure that the loan is used to acquire, improve, or maintain the property.  The lender delivers a form 1098 form to owners of the property to make it easier to claim this deduction.

Property Expenses: Ordinary and necessary expenses related to the property can be deducted. This includes all expenses getting the property ready to rent, charges for finding tenants, management fees, repairs, preventative and on-going maintenance, utilities, HOA dues, etc.  Homeowner insurance premiums and real property taxes can also be deducted and if they are paid to the lender in escrow who in turn pays those bills for you. Those payments will be located on your annual escrow report from the lender or on the form 1098.  Even travel expenses incurred for property-related purposes may be deductible from rental income.

Professional Services: If you do not manage your rental properties yourself, any fees paid to property management professionals such as my firm, an accountant you may have, or real estate attorneys you retain are deductible. These experts should also be able to help you navigate the complexities of tax on income generated by owning and renting out residential real estate.

Depreciation: Depreciation is a non-cash deduction that allows you to account for the wear and tear of your rental property over time. Even though you are not recording this as an expense that you pay for, the IRS provides for a declaration of depreciation expense to recognize that assets lose their value over time.  There are specific guidelines for depreciating different components of your property, such as buildings and appliances or capital improvements made.

Depreciation: A Valuable Benefit to Landlords

Depreciation is a powerful tax-saving tool that deserves special attention. It allows you to allocate a portion of the property’s cost over its useful life, thus reducing your taxable income. To make the most of depreciation, consider the following:

The Modified Accelerated Cost Recovery System (MACRS) is the method used by the IRS to determine depreciation deductions.  MACRS tables to calculate depreciation accurately are located online and individual residential properties depreciate at a rate of 3.636% each year for 27.5 years.  Note that only buildings and contents are depreciated.  You cannot depreciate the land value.  

Make sure to maintain good records of the property’s original purchase cost, all acquisition fees and charges paid, improvements over time, and other expenses that can be depreciated. These records may be harder to locate if you have lived in the house as owner occupant for some time.  All of this information will be needed to set up your depreciation schedule whether you do it yourself or rely on a tax preparation professional.  Lastly, be aware of  the ā€œrecapture tax.ā€ If you sell a rental property for a profit after having claimed depreciation expenses, you may need to pay ā€œrecapture taxā€ on the accumulated depreciation deductions. Proper planning can help minimize this tax liability.

Tax Preparation Tips for DC Landlords

If someone else collects your rental income for you, they will deliver to you a form 1099-MISC. The income reported should match the gross income you receive over that tax year, not the net income after expenses. This is a common misunderstanding.  All rental related expenses can be deducted from the reported gross income.

If your rental income includes subsidized rental payments from the DC Housing Authority, you will be sent a form 10099-MISC.  If your manager also issues a form 1099 on your tax ID, then it needs to be reconciled in your tax return to inform the IRS and to avoid double reporting (and taxation) of rental income.

Every year owners with rental property in the District of Columbia need to file tax returns with the DC Office of Tax and Revenue (OTR). It is important to keep your tax filings current as it can create a roadblock in the future to renew your business license or do other business with the District government if you need a clean hands certificate.

A D-30 form is filed to report rental income, even if you do not earn other income in the District. You must also file a Personal Property Tax return FP-31, even if you have no personal property at the rental. The latter filing can be done online within minutes as a zero dollar return in your MyTaxDC portal. CPM has instructions if you need help. 

If you wish to file an extension so that your DC taxes are filed later in the year, use form FR-128 and file it on time.  NOTE: If you expect to have tax due for when you file the D-30, you must pay the estimated amount at the time of filing the extension. Failure to do so or failure to pay the right amount, will result in fines and penalties.

Navigating tax season as a property investor or landlord requires careful planning, attention to detail, and a good understanding of the tax code. Deductions, depreciation, and tax-saving strategies are essential tools that can help you maximize your return on investment and minimize your tax liability. 

As March arrives and tax filing begins, consider consulting with a tax professional to ensure you are making the most of these opportunities. With the right approach, you can make tax season a financially rewarding time for your real estate investments rather than a burden..

This article was written with publicly available information and is not to be considered as professional tax advice. A taxpayer should always consult a tax professional to determine if the ideas and strategies presented in this article apply to their situation. 

Note: Tax deadlines may vary based on individual circumstances, state residency, and tax situations. Always verify deadlines with the relevant tax authorities and consult with a tax professional if needed.

Scott Bloom is owner and Senior Property Manager of Columbia Property Management. Bloom founded Columbia Property Management in 2012. CPMā€™s goal is to provide a powerful, personal level of service to clients. For more information and resources, go to columbiapm.comĀ 

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Real Estate

Loving where you rent in D.C.

Creating a home you can adore in the nationā€™s capital

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D.C. offers a vibrant lifestyle, but it can pose challenges for renters. (Washington Blade file photo by Michael Key)

As Valentine’s Day approaches, our thoughts often turn to love. While we may think of candlelit dinners or romantic gestures, love extends beyond relationshipsā€”itā€™s about the spaces we inhabit and how we nurture our connection to them. Loving where you live can have a profound impact on your well-being, and for renters in Washington, D.C., transforming an apartment into a cherished home is not only possible, but also can feel essential.

Washington, D.C., offers a vibrant lifestyle, but it can also pose challenges for renters. High costs, stressful work environments, limited space, and the very nature of urban living might make it harder to settle in. However, with some thoughtful adjustments, you can turn your rental into a space you love. Letā€™s explore how to create a home thatā€™s a sanctuary, not just a stopover.

Personalize Your Space

One of the first steps to loving where you live is making it feel uniquely yours. Although renting may come with restrictions, there are plenty of ways to customize your apartment:

  • Add Color: Use removable wallpaper or peel-and-stick decals to introduce vibrant or calming hues. Area rugs are another excellent way to bring warmth and character to any room.
  • Display Your Story: Showcase meaningful art, family photos, or souvenirs from your travels. Gallery walls can make even a small space feel personal.
  • Lighting Matters: Replace harsh overhead lighting with floor or table lamps to create a cozy ambiance. Use LED bulbs to save energy and customize brightness levels.

Embrace Multifunctional Furniture

City living can impose limited square footage and multifunctional furniture is your best friend. Look for pieces that serve dual purposes:

  • A storage ottoman can double as seating.
  • Fold-out tables save space while offering dining or work surfaces when you need them.
  • A quality sofa bed is perfect for accommodating guestsĀ 

Incorporate Plants and Greenery

Bringing nature indoors can instantly uplift your mood and enhance your living space:

  • Low-Maintenance Options: Snake plants, pothos, and succulents thrive with minimal care.
  • Vertical Gardens: If floor space is limited, consider wall-mounted planters.
  • Window Sills: Herbs like basil or mint not only look and smell good, they are useful for cooking.

Create Comfortable Zones

Think about how you use your apartment and design dedicated areas:

  • Work Corner: With remote work becoming increasingly common, invest in a comfortable chair, desk, and good lighting.
  • Relaxation Spot: A corner with a plush chair, blanket, and books can be your go-to for unwinding.
  • Entertaining Area: Even small spaces can shine with the right setup for hosting, such as a stylish bar cart or foldable chairs.

Maintain and Refresh Regularly

A clutter-free and clean apartment naturally feels more inviting:

  • De-clutter quarterly, donating or discarding items you no longer use.
  • Use storage systems to stash things away you do not need regularlyĀ 
  • Add seasonal touches like new cushions or throws to keep your space feeling fresh.
  • Invest in quality cleaning tools to make upkeep easier.

Discovering the Loveable Side of D.C.

Beyond your apartment, Washington, D.C., is a city rich in experiences that make life here unique. Embracing the D.C. lifestyle can deepen your connection to where you live. Here are a few affordable and distinctly D.C. activities to enjoy this Valentineā€™s Day month:

Loving Life in D.C.

1. Explore Hidden Gems:

  • The United States Botanical Garden: Even though it is the middle of winter, the Conservatory on the grounds of the U.S. Capitol is a wonderful place to get out of the cold.Ā  And a bonus – it is the time of year when orchids are in bloom. Enjoy a touch of a tropical environment right in downtown DC.
  • Kennedy Centerā€™s Millennium Stage: Enjoy free performances showcasing local and international talent. Every day, usually at 6 p.m., you can see artists from around the world in the central hall at the Kennedy Center. And all you have to do is get there in time! Check out the entire program here:Ā  https://www.kennedy-center.org/whats-on/millennium-stageĀ 

2. Taste D.C.’s Diverse Cuisine:

  • Sample global flavors at Union Market. https://unionmarketdc.comĀ 
  • Grab a half-smoke from Benā€™s Chili Bowl, a true local original, on U Street, H Street, and other locations citywide.

3. Embrace the Outdoors:

  • Walk or bike the Mount Vernon Trail along the Potomac River; the Capitol Crescent Trail on the west side, and the newer trail, the Metropolitan Branch Trail that runs from Union Station to Silver Spring.
  • Visit Malcolm X Park (also known as Meridian Hill Park) for its cascading fountains, lively drum circles, snow ball fights, and more! Ā 

4. Dive Into History:

  • Tour the lesser-known exhibits at the Smithsonian Anacostia Community Museum, the National Museums of Asian or African Art, and the incredible Renwick Gallery of American Art opposite the White House.
  • Explore the Frederick Douglass National Historic Site for a deeper understanding of D.C.’s role in history.Ā  https://www.nps.gov/frdo/index.htmĀ 

5. Enjoy Affordable Culture:

  • Attend pay-what-you-can nights at local theaters like Studio Theatre, Woolly Mammoth Theatre Company, or Theatre J located in the Jewish Community Center at 16th Street and Q Streets, NW.
  • Take advantage of free museum access year-round, from the National Gallery of Art to the Hirshhorn Museum.

Building a Life You Love

Loving where you live isnā€™t just about the walls that surround youā€”itā€™s about the life you create within them. By personalizing your apartment and immersing yourself in the unique experiences D.C. offers, youā€™ll better foster a personal sense of belonging and joy. This Valentineā€™s Day, remember to nurture not only your relationships, but also your relationship with your home and your city. After all, love begins at home.


Scott Bloom is owner and senior property manager of Columbia Property Management. For more information and resources, go to ColumbiaPM.com

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Real Estate

Navigating D.C.ā€™s down payment assistance programs

On the way home, after a detour and a few speed bumps

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D.C. offers some of the most extensive programs for down payment assistance in the country. (Illustration by demianvs/Bigstock)

D.C. offers some of the most extensive programs for down payment assistance that are managed by the Greater Washington Urban League and the DC Housing Finance Authority, for programs like HPAP and EAHP (Home Purchase Assistance Program and Employer Assisted Housing Program). 

The District also offers the DC Opens Doors Program. All of these are great examples of offerings to help first-time or newer home purchasers to afford buying in the District of Columbia, one of the nationā€™s most expensive housing markets. 

There are various requirements for a buyer to use the program. These can be found at dhcd.dc.gov/service/homeownership. Many qualified local lenders are knowledgeable about these programs and can assist in dozens of these transactions each year. Often, asking a lender about these programs is a great place to start. Tina Del Casale with Sandy Spring Bank has been helping her clients with these programs for years. As part of her education outreach for clients, Tina informs her buyers of the following:

  • In the HPAP and the EAHP program, the seller must provide the opportunity for the buyer to perform a home inspection with a qualified home inspector. Ā 
  • The items that are flagged as ā€œmust repairsā€ need to be fixed by the seller. Ā 
  • The buyer must get their financial documentation to the lenders involved, as well as to the District of Columbia to be approved to use the program. Ā 
  • Whichever organization or department is managing the down payment assistance fund disbursal will also be involved in the process.Ā 
  • Ideally, it takes about 45-60 days from the date of ratification (going under contract) to close (the settlement date)Ā 
  • The lenders help to qualify/approve the condo buildings for financial health, ensuring that the finances within the building are being maintained by the homeowner association.

What happens, often, is that the process goes smoothly until the organization that manages the down payment assistance funds receives the file. The closing date can be extended time and time again, causing both the buyer and the seller to recalculate moving dates, moving trucks, packing, when to move funds around, whose home they will be sleeping at after the 3rd or 4th delay, and wondering if the seller is going to become so agitated with the entire process that they begin to Google search the term ā€œsmall claims court.ā€ In a recent instance, the buyer was delayed about four times over the holidays and when the file was ready to close, they were informed that the settlement had to be the following day. So, it was a situation of delay, delay, delay, delay, delay, delay, delay, and do this NOW, which means a buyer must coordinate (for the maybe 3rd time) a day off of work and recalculate their entire schedule at the last second to accommodate an organization that seems to have made few efforts to stay in communication along the way.

These delays make the buyer less competitive to win an offer and can make a planned purchase fail due to the failure of the buyer to perform. Nobody wants to be told their house will sell and then must make alternative plans when they realize the contract is not going through, OR there will be a significant delay by up to one to three months. 

How can we make this process more user friendly? If we could, developers might be more motivated to make affordable housing units available for more people, knowing that the process of selling a unit wonā€™t cause interminable delays and headaches for all parties involved.  Buyers must be fully vetted financially before submitting an offer. Is there a way to fully vet the down payment assistance funds, that they arrive in escrow at the title company a week or two before settlement so that all parties can plan their lives accordingly? 

Self-awareness as an organization is crucial for knowing where blind spots exist, how they can be looked at, and how a decent process can be improved to fulfill its own goal of helping buyers get into homeownership. Perhaps an exit interview or feedback form could be sent to each buyer after purchase and looked at for suggestions for improvement.


Joseph Hudson is a referral agent with Metro Referrals.Ā Reach him at 703-587-0597 orĀ [email protected].

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Real Estate

Tips for those considering buying a home in the Caribbean

Weather, safety, infrastructure among concerns

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Many Americans are considering leaving the country for the next four years. The Caribbean is an appealing option. (Photo by Nik Sorokin/Bigstock)

I recently returned from cruising through the Caribbean, just in time to experience the last vestiges of a snowstorm and 15-degree weather, coupled with a plethora of angry people wearing red hats, absent-mindedly riding around in circles on the Metro. No matter ā€“ I still have that post-vacation glow.

The Caribbean, a diverse region of 13 independent countries, 12 dependencies, and seven overseas territories, has long been a dream destination for travelers, retirees, and investors alike. With its crystal-clear waters, pristine beaches, and relaxed lifestyle, it’s no wonder that many people are drawn to the idea of owning property in this tropical paradise.

Buying real estate in the Caribbean requires careful planning, research, and an understanding of the unique challenges and opportunities that come with investing in a foreign market. Selecting the right island and community is a critical step in the buying process.

Consider such factors as:

  • Accessibility: Proximity to major airports and ease of travel
  • Infrastructure: Availability of roads, utilities, and amenities such as internet and streaming services
  • Safety and security: Crime rates and political stability
  • Climate and weather risks: Susceptibility to hurricanes and natural disasters
  • Healthcare: Quality and availability of medical services

Property prices and inventory vary widely across the region. Each Caribbean nation has its own rules regarding foreign ownership of property. Some countries have relatively open markets where foreigners can buy land freely. Others, such as the Bahamas, require special permits for non-residents purchasing property above a certain value.

It is essential to work with a reputable local attorney to navigate the legal requirements, including landownership laws and restrictions, residency and citizenship options, property taxes and fees, and title searches and due diligence.

Some islands, like Barbados and the Cayman Islands, offer residency permits for property owners who meet specific financial criteria. These programs can provide tax benefits, visa-free travel, long-term residency rights, and in some cases, top-tier medical facilities, including private hospitals and specialized care centers. 

Moreover, Antigua & Barbuda,Ā Dominica,Ā Grenada,Ā St. Kitts,Ā andĀ St. Lucia offer a Citizenship by Investment (CBI) program for property buyers: In some cases, citizenship will grant you visa-free access to more than 150 countries. While the costs fluctuate depending on the country, the process can be completed in as little as 7-12 months.Ā 

As you can imagine, there has been a surge of inquiries from the U.S. since last fall, so it would be wise to confirm the most recent amount and type of minimum investment required. You can find helpful information from the company La Vida atĀ  goldenvisas.com.

Many buyers in the Caribbean look to generate income through vacation rentals or long-term leasing. Islands with strong tourism demand, such as Aruba, the Bahamas, and St. Lucia, offer excellent rental potential. 

Working with a reputable property management company can help maximize rental income and ensure smooth operations; however, investors should consider seasonal fluctuations in tourism, property management costs, and local regulations on short-term rentals in determining their return on investment before committing to a purchase. 

As in the U.S., buying property in the Caribbean comes with additional costs beyond the purchase price. These may include legal fees (typically 1-3% of the purchase price), stamp duties and transfer taxes that vary by country, real estate agent compensation, property insurance, and maintenance costs.

Financing can be a challenge for foreign buyers, as many Caribbean banks require substantial down payments or have stringent lending criteria. Some investors choose to secure financing from their home country or pay in cash.

Nonetheless, expatriates living in the Caribbean often benefit from a lower cost of living, warm climate, and relaxed lifestyle. Many islands have well-established expat communities, making it easier to adjust to life abroad. As you begin your journey, it is recommended that you secure health insurance that covers medical treatment in both the Caribbean and your home country.

To successfully purchase property in the Caribbean, research and choose your preferred island based on your budget, lifestyle, and investment goals. Work with a local real estate agent who understands the market and legal requirements and, if applicable, speaks the appropriate language. Hire an attorney to conduct a title search, review contracts, and ensure compliance with local laws. Negotiate the purchase price and sign a sales agreement. Secure financing (if needed) and transfer funds. 

Once you have completed additional legal requirements such as obtaining permits, paying taxes, and registering the property, you might consider rental or management options if you are not living there full-time.

But if the Caribbean is to be your home away from home for at least a few years, turn off the news, stick an umbrella in your favorite frothy adult beverage, and lean into island living. 


Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH @properties. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.Ā 

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