How Your Rental Property Tax Write-Offs Help You Save On Taxes

Written by: Adiel Gorel
Hint… The Tax Deductibles Are Infinite One of the big reasons it makes sense to invest in residential real estate is the kind of rental property tax write-offs you can claim. As an investor, pretty much all the expenses you incur on your investment property are tax deductible. It is a vast and complicated subject […]
Published on December 20, 2023
Last update: ago
Est. Reading: 2 minutes

Hint… The Tax Deductibles Are Infinite

One of the big reasons it makes sense to invest in residential real estate is the kind of rental property tax write-offs you can claim. As an investor, pretty much all the expenses you incur on your investment property are tax deductible. It is a vast and complicated subject – something that we tackle in our quarterly property expo at length.

I have made it my life's work to help others create wealth via real estate investing. And I do believe that I have been successful in doing that to a very large extent. I have a lot of stories about people who managed to transform their lives even when they started to invest in real estate only later in life. 

This week, I'm going to give you a quick idea about the rental property tax write-offs and benefits associated with real estate investing.

Tax deductions you can claim on your real estate investments.

rental property tax write offs

What real estate expenses are tax deductible? Pretty much all of them! – Adiel Gorel

One of the ways in which the government guides public spending and investments is to offer incentives in the form of tax deductions. We receive rental property tax write-offs on our real estate investments as well. Pretty much all of the expenses of owning investment homes are tax deductible.

Of course, the principal amount is not deductible, but there are many other things that you can claim tax benefits for. The mortgage interest amount is tax deductible. The fees that property owners typically pay as a contribution to their Homeowner's Association are also tax deductible. Property taxes are deductible. All of these add up to considerable savings.

Investment homes are more beneficial.

By virtue of a 2018 law, there is a ceiling in place for the amount one can claim as a tax deduction on the home one resides in. That ceiling of $10,000 may not cover actual expenses in some cases. The actual expenses can exceed this limit in some of the country's more expensive real estate markets, such as New York, San Francisco, and Los Angeles.

However, there is no such limit on rental property tax write-offs and deductions you can claim on your investment homes. This adds up to very significant tax savings, making it beneficial to invest in residential real estate. Right now, while commercial property markets are not doing too well, the residential space still offers very viable investment options.

Once you've bought your home and placed a competent property manager in charge, you start to earn a handsome rental income that helps repay your loan. All the while, you also continue to get tax benefits. All in all, an insanely good investment! To know how simple it actually can be, find out more about our Remote Control Retirement Riches formula

 

ICGRE Logo - Red
ICG uses single-family home investments, bought in advantageous locations and the best U.S. markets. We enable you to enjoy the clout that comes from purchasing a multitude of houses, even if you only buy one.
CONTACT
165 N. Redwood Dr. Suite #150 San Rafael, CA, 94903
Toll Free: (800) 324-3983 
Phone: (415) 927-7504 
Fax: (415) 924-7869 
Email: info@icgre.com
FOLLOW US
ICG BBB Business Review
Copyright © 2024 All Rights Reserved