Real Estate Investors will get to know the handful amount of tax benefits, these tax breaks can be a bit overwhelming. Once you understand how Real Estate Investing tax benefits work.

Top Write Offs And Deductions:

Real Estate Investor Deductions


When Real Estate Investors fill out for deductions, these tax write-offs, are typically geared towards rental properties, but, will include costs associated with mortgage interest, property tax, operating expenses, depreciation, and if needed, repairs.

Some deductions can be included as fixing leaks, painting and replacing broken parts of the rental property.

Real Estate Investors can also deduct their mortgage interest on their primary and sometimes even their secondary residence. This deduction will  apply to home purchases or newly refinanced mortgages, home equity lines of credit and home equity loans.

Capital Gains


Capital gains are profits that homeowners make when selling their real estate property, this includes a rental, residential, commercial or industrial property. They are generally taxed in one of two ways:

  • Short term capital gains
  • Long term capital gains

Short Term: This applies for gains on investment properties that were held for one year or less. Although, there is no special tax treatment for short term capital gains, Real Estate Investors need to pay taxes at their regular tax bracket defined by the IRS.

Long Term: These capital gains are made on properties that were held for more than a year, normally linked with rental properties. Capital long term gains are much more favorable with Real Estate Investors, as it’s a lower tax rate than short term gains.

Real Estate Investors continues to be a popular investment strategies for protecting and growing one’s wealth. Combined with the attraction of generating cash flow, Real Estate Investing also opens a slew of tax advantages that renting does not.

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