Top 5 Tax Deductions Real Estate Investors Shouldn’t Miss in 2025

[Ashish Acharya]

Real estate investors can reduce taxes and maximize returns by leveraging these key deductions in 2025

1. Depreciation

• Residential (27.5 years) & Commercial (39 years) depreciation allows gradual tax savings.
• Bonus depreciation drops to 40% in 2025—a cost segregation study can help accelerate deductions.

Pro Tip: Faster depreciation means larger upfront tax savings and improved cash flow

2. Interest Deductions (Including Personal Loans!)

• Mortgage & business loan interest for rental properties is fully deductible.
• Under the interest tracing rule, even personal loan interest qualifies if used for real estate investments.

Pro Tip: Maintain clear documentation to support deductions

3. Repairs & Maintenance

• Routine repairs (painting, plumbing) are fully deductible.
• Major improvements (roofing, HVAC) must be depreciated over time.

Pro Tip: Use safe harbor elections to expense certain improvements upfront

4. Travel Expenses

• Mileage, airfare, lodging, & meals for property management are deductible.
• Keep a mileage log to track business-related travel.

Pro Tip: Mixed-use trips? Only business portions qualify for deductions

5. Professional Services & Tax Structuring

• Fees for CPAs, tax advisors, attorneys, and property managers are deductible.
• LLCs & S-corps can help reduce taxes and offer asset protection.

Pro Tip: Consult a real estate tax strategist to structure your investments efficiently

Don’t Overpay on Taxes!
Are you maximizing your deductions? Let’s discuss how to reduce your taxable income and optimize your real estate tax strategy in 2025.