In recent articles, we've discussed at length the advantages of cash flow real estate solutions as they relate to wealth preservation and retirement planning. But there are other tangible benefits to choosing rental properties as an investment strategy, most notably the annual tax write-offs that owners are able to employ when they file.
Today, we'll go over some of the biggest deductions that the IRS makes available to rental landlords.
These tax benefits include:
Depreciation costs – All tangible assets lose some value over time. This is especially true for homes, including those that are in areas with damaging weather patterns. The U.S. government permits rental owners to deduct the depreciation cost from the purchase price of the home. However, it should be noted that the physical land that the home is exempted from this benefit.
Interest write-offs – Currently, the U.S. government allows property owners to deduct any interest expenses they pay during the year. This includes borrowing costs for mortgages or other forms of credit used. If you utilize a credit card to pay maintenance costs, the interest incurred from those expenses are also eligible for this type of deduction.
Travel expense coverage – Managing a rental property can be an occasional time-consuming process. As such, you may find yourself driving somewhere for repair supplies or to scope out new properties. If these types of activities are a part of your official business schedule, the IRS allows you to write off these costs.
Contact GreatWealthStrategies.com to learn more about how cash flow real estate can yield you these and many more economic benefits. Stop by our website today to receive your own "Free Game Plan Report" and start the path to investment freedom.