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Are you reaping the full benefits of your rental property? Whether you currently own a rental property or are considering making the leap, here are some tax write-offs to be aware of that may be deducted from your rental income:
- mortgage interest — if you carry a mortgage on your rental, you are eligible to deduct the interest from your rental income;
- ordinary and necessary expenses — costs paid to maintain and manage your property may be deducted, including maintenance, repairs, insurance and advertising;
- depreciation — renovations to improve the property beyond its original condition aren’t deductible, but they may be offset through depreciation, which is deductible; and
- property taxes — just like with your principal residence, you may be able to deduct limited property tax payments.
When you sell your rental property, research §1031 exchanges, which allow you to defer capital gains taxes paid upon the sale when you purchase a similar replacement property.
Are you interested in talking more about buying or selling investment property? Contact me for more information!
