One of the best benefits of owning real estate is the amount that you can reduce from your taxes!
🏡 Every year, you get to deduct 1/27.5 of the value of the structure as a passive loss against your passive income (such as your rental cash flow). This is called depreciation.
🔨 You also get to deduct any costs associated with operating your rental property, such as paying for your mortgage interest, property taxes, insurance, and property manager.
✈️ You can also write off any traveling costs associated with running your investing business, such as flights, hotel stays, and meals when you travel to visit your properties!
🏦 Naturally, you can also invest in an IRA and deduct that amount from your taxable income as well!
What are your favorite tax deduction strategies?
Disclaimer: Not financial advice. Any investment commentary is my opinion only.
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