Tax Benefits

Tax benefits are one of the many advantages of investing in real estate rental property. By owning and operating a rental property, you become eligible for a few different tax deductions. Some rental property tax deductions include repairs and improvements to the investment property, negative gearing (which is when your annual rental expenses exceed your annual rental income), and even travel expenses if you own an out of state rental property. One significant tax deduction is the ability to deduct real estate depreciation (the opposite of appreciation). Depreciation is a loss in value of the rental property over time. This is deducted over many years depending on if the property is residential real estate or commercial real estate. Recently, real estate investors gained even more tax benefits from the introduction of Opportunity Zones. If you invest in these areas in the US housing market, you can be eligible for certain tax benefits if the real estate investment meets the set regulations. When it comes down to it, these tax benefits can help you achieve a good return on investment. Start looking for an income property now with Mashvisor.