Real Estate Investment Tax Incentives

Since Tax season has started and coming to end, and since I have time to write this. I just want to share these tax perks you can get when you invest in real estate, sometimes tax preparers tend to forget to add this, all you have to do is prepare the following and your tax preparer will be happy to port this in so you can get tax the tax perks:

1. Interest Paid to your mortgage company- this can be found in your year end statement from your mortgage company, and usually this get sent to your address.

2. HOA fees or Management fees – if your real estate investment is managed by a property manager you can deduct that to your income as well as HOA fees.

3. Depreciation – this is one thing you need to add, your investment depreciates overtime and you can deduct that to your yearend income when you file your taxes.

4. Improvements- I dont know how this works but you can add this to the value of your property and I think this gets deducted also by using depreciation. This also include repair and rehab costs.

5. Green upgrade credits – like installing solar panels and green upgrades.

6. Insurance cost and taxes paid for the property are also tax deductible.

7. Tax deferred perks like

8. Local Travel –

9. Home Office-

10. Employee and independent contractors

11. Casualty and theft loses

12. Legal and professional services

13. 1031 exchange

14. Short Term vs Long Term Tax in real estate when selling.

 

so far this is the items i used to to lower my taxes and as well let me get a fat tax refund- and thats sweet!

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