Basic tips for real estate investors to save money on taxes
I'm a new real estate investor, and I found some basic tax tips, which I want to follow:
1. Depreciation - a non-cash deduction that allows me to deduct a portion of the cost of properties over their lifetime.
2. I can deduct many different expenses as a real estate investor, such as mortgage interest, property taxes, and repairs.
3. If there are any losses on real estate investments, I can offset them against capital gains.
4. Pass-through entities, such as partnerships and S corporations, allow to pass the income and losses from business directly to tax returns.
Do you think hiring a tax professional is a must-have? What are your tips?