“Top 7 Tax Deductions Every Real Estate Investor Should Know About”
ByOlivier
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1. Mortgage Interest Deduction
One of the biggest deductions available to real estate investors is mortgage interest. If you took out a loan to purchase an investment property, the interest you pay on that loan is fully deductible.
Key Points:
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Applies to both residential and commercial investment properties
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Only the interest portion of your monthly mortgage payment is deductible
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Must be a qualified loan used to acquire or improve the property
How to Claim:
Keep detailed loan statements and ensure the loan is solely for investment use. You’ll deduct the interest amount annually using IRS Form 1040 Schedule E for rental properties.
