The Best Tax Benefits of Real Estate Investing

There are many exciting benefits when it comes to real estate investing. One of the most notable is the myriad of ways it can help you save on your taxes — which can also help you earn more from your properties overall.

If you own investment property, make sure to take advantage of these key tax benefits:

Mortgage Interest and Credit Card Payments Are Deductible

If you borrowed money to buy your rental property, the interest on your loan is tax deductible. Make sure to keep records of your loan payments for verification.

You can also deduct credit card payments for charges related to the management of your property. For example, using a credit card to buy supplies used for the maintenance of your rental property is deductible. For this reason, it can help to get a separate business credit card for these purchases.

You Can Deduct Your Property Management Expenses

As a property owner, you’re responsible for maintaining the rental property in good condition. This includes taking care of pest control, landscaping, repairs, and maintenance. These costs are tax deductible.

Additionally, you can deduct the costs associated with paying property taxes, property and liability insurance, and attorney’s fees. As long as these services relate to the operation of your rental property, they are deductible.

Enjoy Tax Breaks on Miscellaneous Owner Expenses

You can also deduct other expenses relating to the ownership of your investment property. If you use a home office strictly for managing your property, you can deduct $5 per square foot for up to 300 square feet. 

Travel expenses, including lodging, are also deductible when you travel strictly for business purposes related to your investment property. 

Educational resources are deductible as well. If you take a real estate investing course, sign up for online tax courses, or subscribe to real estate periodicals, you can deduct those expenses. 

Get Professional Property Management Help from the Experts

Reliable Property Management offers a wide range of property management services in Baltimore to help you get more enjoyment out of your investment property. 

From interacting with your tenants to keeping financial records for your taxes, we can effectively simplify rental property ownership — give us a call at (443) 869-3799, or contact us online to learn more.