Tax Advantages Of Owning A Rental Home

Are you thinking about buying a rental property? If so, you should know that there are several tax advantages of owning a rental home. Take advantage of these benefits and save money on your taxes!
By: Coldwell Banker Paradise
VERO BEACH, Fla. - May 11, 2022 - PRLog -- Per Jillian Arce member of Team Paradise Property Management "Best Vero Beach Property Management Co."

Operating expenses are deductible. This includes repairs, maintenance, utilities, insurance, and property management fees. You can deduct these expenses from your rental income to lower your taxable income.
  1. Mortgage interest is deductible. If you have a mortgage on your rental property, the interest you pay on the loan is tax-deductible. This is a great way to save money on your taxes.
  2. The depreciation deduction. The IRS allows owners of rental properties to take a depreciation deduction each year. This deduction allows you to write off a portion of the cost of your property over time. The depreciation deduction can save you thousands of dollars on your taxes over the life of your investment.
  3. The ability to defer capital gains tax. When you sell a rental property, you may be able to defer the capital gains tax by reinvesting the proceeds into another rental property. This is a great way to postpone paying taxes on your investment income.
  4. Owner expenses are deductible. If you own a rental property, you can deduct certain expenses from your taxable income. These expenses include advertising, legal and professional fees, and travel expenses related to your rental property.
  5. The option to avoid FICA taxes. If you are an active participant in a qualified retirement plan, such as a 401(k) or IRA, you can avoid paying FICA taxes on your rental income. This can save you thousands of dollars each year.
  6. The ability to qualify for a pass-through deduction. If you own a rental property through an LLC or partnership, you may be able to take advantage of the pass-through deduction. This deduction allows you to deduct a portion of your rental income from your taxes.

As you can see, there are several tax advantages of owning a rental property. These benefits can save you money on your taxes and help you build wealth over time. If you are thinking about buying a rental property, be sure to consult with a tax professional to learn more about how these benefits can save you money!

For more information about renting a home or selling your home, please contact Jillian Arce and her team at

Jillian Arce
Tags:Vero Beach Property Mgmt
Industry:Real Estate
Location:Vero Beach - Florida - United States
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