Tax Advantages of Real Estate

March 19, 2007 by

The tax advantages of real estate are staggering. You can own a rental unit, collect rent, pay operating expenses and loan payments, and come out with a positive cash flow, and then still get a tax break. When you own rental real estate, or even if you just buy and sell properties, you are classified as being self employed. You are also allowed to deduct operating expenses, which further reduces your income for tax purposes.

Been self-employed is one of the greatest tax savings tools that exist. You are able to shift a lot of your regular living expenses into the area of legitimate tax deductions. Of course, along with the advantages of preferred tax treatment, appreciation, and leverage, there is also monthly income that can be made, using a few simple methods of buying, renting, managing, and selling.

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8 Responses to “Tax Advantages of Real Estate”

  1. Chuck on March 9th, 2007 12:10 am

    Good site, nice design!

  2. Real Estate Guru on March 22nd, 2007 4:20 pm

    Thanks Chuck. I hope you find this information useful!

  3. Real Estate Taxi on June 30th, 2009 4:54 pm

    There are so many benefits to owning a home and then renting it out. The tax breaks are a fantastic reason! Great Point!


  4. Moshe Cohen on July 25th, 2009 5:22 pm

    Tax Appeal
    Prices are back to 2003 levels. next year will be the hottest for tax appeals.

  5. uscsigep on October 21st, 2009 8:13 am

    Check out Beths Picks for more information on real estate as well,

  6. Real Estate Agent Finder on December 4th, 2010 1:23 pm

    We miss you why don’t you update your blog sometimes, Realtors want more knowledge!:)

  7. Irmina Folliero on November 6th, 2011 9:42 am

    one of the things that home buyers should look forward to when they start the process of home ownership is the tax advantages. Owning Real estate properties can be a tough financing endeavor, but sure is, the rewards are pretty cool!

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    Elmhurst Homes for Sale

  8. Susan Ledford on November 27th, 2011 11:08 pm

    True enough, home buying can be a burden financially as huge amount of what you earn should go straight to the monthly financing of the property. However, it is really true that there are several advantages to home ownership, despite financial troubles and one of these is the tax benefits that a homeowner can get. Thanks for sharing the article!
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