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TAX BENEFITS |
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Each year as demand for housing grows, and land is developed, your property
will become more valuable. Historically real estate has always increased in value.
Most expenses related to owning your property are tax deductible. Your TAXABLE INCOME is reduced directly by the expenses from your property. Items that reduce your Taxable Income are:
- Depreciation (Sales price of home divided by 27.5 years)
- Property taxes
- Mortgage interest
- Utilities
- Insurance
- Repairs & Maintenance
The depreciation expense deduction can result in a positive cash flow property becoming a loss maker for tax purposes.
Most investment properties go up in value every year, but on paper their value is going down
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