The United States deficit is exceeding $13 trillion and is unfortunately growing at a record pace. At some point, we are going to be required to pay for this. With the possibility of a tax hike on the horizon, how are you going to protect your assets? It is important that you understand how Arizona investment property can provide a tax shelter. Many investors are paying too much in taxes by not fully understanding how real estate can benefit their tax situation.
There are several items associated with rental property that can provide investors with tax advantages. The following expenses can be deducted from your taxable income and decrease your tax exposure.
Arizona investment property can provide tax benefits
- Advertising
- Cleaning and Maintenance
- Commissions
- Depreciation
- Insurance
- Interest
- Legal Fees
- Local transportation expenses
- Points
- Rental Payments
- Repairs
- Tax Return preparation fees
- Taxes
- Travel Expenses
- Utilities
The information above is a list of potential deductions based on IRS Publication 527 “Residential Rental Property”. These may or may not apply to your investment. Please consult with your CPA or tax professional, as Clear Vision Investment Group does not provide tax advice. If you do not have a CPA or tax professional, make sure you develop a relationship with someone who is reputable. They will be a valuable addition to your real estate investment business.
There is a long list of advantages to owning Arizona investment property, in addition to the tax benefits. Learn more about some of these other advantages with Clear Vision Investment Group.
