7 Income Tax Savings For Real Estate Investors

Hi, this is Frank Chen with REIClub.com, the only site you need as a real estate investor. Today I've got a quick video on ways to save on your income tax.

Taxes/Insurance/Utilities — You can deduct all of those real estate tax, insurance and utility charges you have already paid from your income tax.

Repairs — Repairs and supplies needed for repairs and upkeep are deductible. Great for income tax savings.

Home Office — If you work from your home, you can take the home office deduction. This means you can deduct that portion of your home's expense, such as mortgage payments, tax and insurance, utility payments, etc., related to your home office. (Separate Meter is usually safer for these deductions, otherwise its a percentage of total home sq.ft.)

Depreciation — This real estate tax deduction lets you depreciate your real estate buildings. Every year for 27.5 years you get a deduction just for owning real estate. You can also depreciate the parts that make them habitable – HVAC equipment, hot water heaters, plumbing and light fixtures – depreciate at different rates

Office Deductions — Office supplies and equipment are deductible. Cell phone, computer, printer, paper for the printer, envelopes, stamps. If its related to your real estate business, it may be a viable income tax deduction.

Business Expenses — Subscriptions, dues and fees are deductible. Internet, newspaper, real estate events, REIA groups, seminars – All likely tax deductible for real estate investors.

Mileage — Mileage in your personal vehicle is deductible. SImply keep a log of the miles driven related to your real estate activities and the savings can really add up.

There are many income tax deduction advantages available for real estate investors, which means you get to keep more of what you make. Always remember to keep documentation for everything you spend on your business, because its highly likely you will be able to deduct these costs come tax season. If by chance you have an accountant, or know a tax advisor, be sure to check with them if you have any questions. Don't make up numbers because its the quickest way to get the IRS knocking at your door.

Again, this is Frank Chen with REIClub.com. Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing.

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