Do you rent property to others? Rental real estate provides more tax benefits than almost any other investment. Besides, the potential for an ongoing income and capital appreciation, such investments offer deductions that can reduce the income tax on your profits. Here are some tax deductions for owners of rental property:
• Interest. Interest is often a landlord’s biggest deductible expense. Common examples of interest that landlords can deduct are mortgage-interest payments on loans used to acquire or improve rental property, and interest on credit cards for goods and services used in a rental activity.