TOP 9 TAX DEDUCTIONS For Your RENTAL PROPERTY

In this video, we break down the top 9 tax deductions for real estate investors to help you save money and maximize your returns.

First, we provide a 10,000 ft view of the three types of income that typically arise from real estate investing:

- Rental income (ordinary income with a federal tax rate of 0 to 37%)
- Capital gains from selling property (0 to 20%, with possible additional tax)
- Depreciation recapture (capped at 25%)

If you want to take your real estate business to the next level and keep more of your hard-earned money, this video is for you!

🔔 Don't forget to subscribe for more insights on real estate investing and business strategies!

Show Notes:
0:00 Intro
3:28 Repairs
7:00 Professional Fees
7:45 Property Taxes
8:26 Wages, IC, Management
9:37 Mortgage Interest
10:58 Depreciation
14:29 Capital Gain Exclusions
17:00 Active/ Real Estate Professional
18:46 Home Office
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.

#realestatetaxtips #realestatetaxdeductions #taxdeductions #realestateinvesting #realestate

[TruthFactOC]

Summary: the income are (rent, capital gains and recapture when sell). 9 Expenses: a) cash expenses - Repairs; professional fees as insurances, accountant, lawyer; Property tax; wages under 18, IC; mortgage interest; b) Depreciation; Capital gain exclusion; Active up to 25, 000 loss; Home office expenses.

[ministryoftruth]

Thank you sir. I bought an investment property and turned it into an Airbnb for a couple of months. I take all the deductions you mentioned and I also use the property as my vacation home 6 to 8 weeks a year, so I have the best of all worlds - passive income, lots of tax deductions, and a vacation home.

[Missmay]

You are a really great teacher, I must say. I work in the legal field specializing in tax, trusts, & estates; however, I’ve recently ventured into the finance side of the industry serving in the corporate trustee capacity. I do understand fiduciary taxation/trust accounting, but as for the inns and the outs of real estate investment, specifically residential rentals, which is for personal knowledge (I own a rental) I’ve been on the lookout for some seasoned advice. You have been the most pleasant to follow, extremely detailed but not unorganized / overwhelming in delivery, knowledgeable, and to the point! Thank you, sir! You definitely got a new subscriber! 👏💯

[kcompanion]

I am repairing a new property and just stepping into the rental market. You have given golden knowledge in only the first two videos watched today. Thank you!!!!

[JayRay]

Re: The AGI of $150K limit (Single and Married) to deduct the full $25K of losses.
That has not changed since forever, it was $150K in 1986. I never hear anyone ever state this as strange. Anyone else think that? Great video 🙂

[orhbo]

Good video, thanks. Probably the best summary I’ve seen on this topic.

[amaniindia]

Which forms do we use with using the passive losses against agi?

[stevewolf]

Hey Toby... you missed a major new(ish) category of deductions; DJT's "yuuge" gift to himself, which happens to also benefit owners of rental property... the pass-through entity 20% forgiveness. Even if you own a single rental property and your income is scheduled rather than through a traditional "Pass-through" entity (like an LLC) the IRS has interpreted this benefit to apply to your income. Any net income which is generated by your Rental "Business" is "Passed through" to your ordinary income, and is eligible for the 20% reduction.

For those of us who are retired and own fully depreciated rental property(s) outright - and therefore generate a substantial taxable income - it's a major tax reducer.

[TheAsuzuki]

Thank you Toby! Awesome content. For the last bonus item, do the kids have to above certain age? e.g., if I have a 7 year old kid, would my kid qualify for it?

[jetlaggedchef]

For your first example, how would you determine the value of the old roof when writing it off because you're taking it out of service?

[veasnalee]

Love your video! Thank you very much!😊

[kevinmccfp]

Good video need more specific info on home office deduction

[adsupermarket]

Thank you for such helpful information ❤

[DanielWyatt-xe]

The rise in tax rates is why I decided to roll over my 401k to a Roth IRA. I don’t want to be 59 and paying taxes on withdrawals from my retirement account.

[rafa]

Hi Tobey… in management is it possible to add HOA fees that Im paying monthly in my rental property?

[Tico_Inversor.]

Toby i just created my LLC for short term rental but for regulation in the city I live I can't operate, but I want to use it like house hacking, this is my first LLC and I want to get into real estate one way or another, can I apply all that you explained?

[HP-kh]

Can anyone explain the home office deductions where Toby talks about using an accountable plan for a management company? Can this be done with 2 rentals or do you need a larger portfolio?

[jarenci]

What about if I own a home (mortgage payment) and move to an apartment, then rent the house. Can I apply any of these?

[tesfaldethbtmariam]

For my primary l leaving house can I write off tax deduction mortgage interest and mortgage insurance?

[dennisnoone]

great content, i did ask my account about paying my teen give em 1099 and do a deduction, but they told me i need to be a S corp to do that, so i got a little lost there, any thoughts?