Are you aware that real estate investors can claim a wide variety of deductions on their taxes? If you’re an investment property owner, you have a great opportunity to lower your tax burden by taking some of the deductions associated with owning a property.
The Most Common Deductions
One of the most common deductions that real estate investors take advantage of is mortgate interest. If you took out a loan to pay for your investment property, then you will be eligible to deduct the interest that you paid on the mortgage. In addition, most real estate investors take a deduction for the depreciation of their properties. Currently, the tax code allows investors to take deductions for depreciation on both residential and commerical property. Finally, many investors take deductions for the costs of repairs in keeping up their investment properties.
As an investment property owner, there are quite a few other deductions that you can take to lower your tax burden. For starters, you can deduct the costs of property management if you hire someone to help manage your properties. You can also deduct things like the cost of traveling long distance for business related to your property investments.
To learn more about the tax deductions for real estate investors, contact Pro Tax Resolution today!