tax-300x300Benjamin Franklin famously said how nothing is certain except death and taxes and that may be true to a certain extent, since you will be paying taxes as long as you have some sort of income. There are, however, a good number number of deductions that come with owning property. Investment property tax, just like any other form of tax, is not meant to be burdensome on the taxpayer, and the government has issued a number of deductions and allowances that you should know while filing your returns.

  • Interest payments

Interest payments are the biggest deductible from any property owner and can come out of interest paid on mortgages or any loans that have been taken on the rental property. They can be for both acquiring the property as well as improvements on it.

  • Repairs

Repairs are fully deductible from investment property tax and can be filed in on the same year that the expense was incurred in so long as they are ordinary, reasonable and necessary.

  • Local and long distance travel

Both local and long distance travel, including hotel stays and airfare, if needed can be deducted from investment property tax. Long distance travel is more thoroughly scrutinized by the IRS, but if you maintain all the required documents and paperwork as required, these deductibles can be very useful.

  • Home office

There is a long list of requirements, but if you also have an office in your home, as a dedicated room where you manage your rental property on, this space can also be deducted from your investment property tax.

Investment property tax deductions is one more reason why you should definitely consider real estate as a long term profit bearing investment. If you can file any of the given deductions, your investment’s returns will be a lot more fruitful.

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