Top 10 Tax Deductions For Real Estate Investors

Today I’m going to reveal the top 10 tax deductions for real estate investors!

Now that the markets have changed many of the flippers and wholesale guys are finding tough times in the market. Before one could put any property under contract then sell it quickly for huge profits. Now the real investors are back and buying with better spreads. Sure, there are plenty of new investors out there buying foolishly, but not in the masses like before.
True investing invloves holding real estate and building wealth. If all you ever do is flip properties then you are only as good as your next deal. Think about it!

Top 10 Tax Deductions For Real Estate Investors

1. Interest
Interest is often the largest deductible for property owners. Examples include.

Mortgage interest payments on your loans for acquiring or improving rental property
Interest on credit cards for goods and services purchased for rental activity

2. Depreciation
Depending on whether you have residential or commercial property, the value of your rental property can be depreciated over a number of years and deducted from the total taxable income. Residential property is depreciated over 27.5 years.

3. Insurance
Insurance premium payments are also a deduction; including fire, theft, flood, landlord liability and employee's health/worker's compensation policies.

4. Employees/Independent Contractors
Wages for any work done on the property by your employees (property manager) or independent contractors (plumber) can be deducted as a business expense.

5. Repairs
Some repair expenses are deductible (if they are deemed ordinary, necessary and within reason) if they are incurred during the tax year you are filing for.

6. Home Office
You can deduct home office expenses provided they meet certain minimal requirements. This deduction applies to space used for office work as well as other workspaces you use to operate your rental business.

7. Local Travel
You are entitled to a tax deduction on the expenses you incur while traveling for work related to your rental activity. Traveling expenses that are related to rental activity may include driving to a property to show a unit to a prospective tenant or driving to a hardware store to pick up supplies for a maintenance task.

8. Long Distance Travel
Airfare, lodging, meals and other expenses can be deductions if you travel overnight.

9. Casualty & Theft Loss
Rental property that is damaged or destroyed by a sudden accident (such as flood or fire) may be counted as a tax deduction as well. All or part of the damage (casualty loss) may be deducted depending on how much of the property was damaged and your insurance policy.

10. Legal & Professional Services
Fees paid to accountants, attorneys, property management firms, bankers/investment advisors, or any other professional service used to operate your rental property can also be included in your deductions.

Goto www.kickasswholesaling.com to learn how to buy properties the right way. Whether you are flippingproperties, buying subject to or building a portfolio you make money when you buy. This is your ultimate real estate buying system. Now go buy a house!

Gerald Romine
www.KickAssRealEstate.com