How to Save Tax – Ultimate Hacks For Real Estate Investors

Property Management Blog

Taxes may feel like a pain to calculate in April, but you can do a lot the whole year to make your tax calculation as well as payment as smooth as breeze.

Whether you accumulate and claim all your pending income at the end of this year to at the beginning of next year, it won’t reflect much on your taxes. This will be simply marked down as your personal choice to conduct business. But expenses on the other hand are a different case altogether. They should be realized as soon as possible.

Related to real estate business there are many expenses that an investor has to deal with. These expenses include, but aren’t limited to, purchase of various equipment, miscellaneous product and services, printing and advertisement, memberships, real estate education, insurance, communication costs, and marketing. The expense increases when you have employees like, medical insurance, social security and unemployment taxes and such. Above all of these expense is the expense of paying off your mortgage.

However, there are many tips that can help you save a lot of your tax deductions. Consider the following for inspiration.

Mortgage Interest:

When an investor pays a month ahead on mortgage payments, it enables interest to be written off for that payment and also it lowers the unpaid balance.


According to the most recent tax code laws, an investor can claim depreciation for 27.5 years on his real estate property. This will help you mitigate your tax burden. Claiming depreciation is one solid way to again on your tax deductions.

Repairs and Upgrades:

Repair and upgrade doesn’t only make your tenants happy but also keep your tax deductibles healthy. You can also claim tax benefits on extensive cleaning before the year ends when your tenants move out.


You can enjoy tax benefits on the mileage of your own vehicle as well as any other vehicles as long as you have rented or leased it.


Any business travels conducted for business are subjected as expense that can be tax-deductible. This also includes attending workshops and such.

Home office:

Your home office room needs to be used only for official business and nothing else. For qualifying for tax benefits you can’t use your official space as a combination for office/guestroom.

Legal/professional fees:

Impending closing costs:

These include title company as well as lender fees

Casualty losses:

In the face of a disaster like a fire, or flood or even an earthquake will let you write off a part of your loss.

Other Expense:

Anything and everything that is directly connected to your real estate business qualifies for tax deduction.

Retirement Savings:

You can easily enhance your contributions to IRAs as well as 401K accounts. You can start one if you haven’t had the chance to get one yet.


Your charitable giving not only enhances your standing in the community but also decreases your tax bill. You can get positive reviews as well as write-off a part of your taxes.

Getting a competent tax consultant will help you get more of these tips to save tax fees. You with the help of your tax consultant can rebuild your business structure and lessen the burden of your self-inflicted tax payments. This is possible if you generate cash flow and active income from your real estate business and use efforts and expenses to run that business.

Real estate investing is one solid business that lets you enjoy massive tax advantages. However, you can’t really do anything regarding that unless you get proper education regarding tax and tax laws. So hiring a tax consultant is your best bet.

If you’d like to talk more about property management, or you need help with Everest Property Management, please contact us at Everest Realty.

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