Real Estate Investors Tax Tips!

Additional Real Estate Investor Tax Tips!
San Diego Real Estate investors are allowed to depreciate their properties for 27.5 years while they have the house as a rental. Depreciation can add losses to your income on paper and thus, reduce your tax burden. Only the improvements (house, sheds, etc.) are depreciable, not the land. The IRS allows depreciation for up to 27.5 years for most investors, according to IRS Publication 946 – How to Depreciate Property. Once you’ve hit the maximum depreciation, some of your tax benefits disappear and it may be time to find another investment property. When you purchase another property, the 27.5-year timeline begins again on that specific property.
*For additional Real Estate Tax information please consult your licensed Tax Consultant