Top 5 Tax Deductions Real Estate Investors Shouldn’t Miss in 2025
Real estate investors can reduce taxes and maximize returns by leveraging these key deductions in 2025
1. Depreciation
✔ Residential (27.5 years) & Commercial (39 years) depreciation allows gradual tax savings.
✔ Bonus depreciation drops to 40% in 2025—a cost segregation study can help accelerate deductions.
📌 Pro Tip: Faster depreciation means larger upfront tax savings and improved cash flow
2. Interest Deductions (Including Personal Loans!)
✔ Mortgage & business loan interest for rental properties is fully deductible.
✔ Under the interest tracing rule, even personal loan interest qualifies if used for real estate investments.
📌 Pro Tip: Maintain clear documentation to support deductions
3. Repairs & Maintenance
✔ Routine repairs (painting, plumbing) are fully deductible.
✔ Major improvements (roofing, HVAC) must be depreciated over time.
📌 Pro Tip: Use safe harbor elections to expense certain improvements upfront
4. Travel Expenses
✔ Mileage, airfare, lodging, & meals for property management are deductible.
✔ Keep a mileage log to track business-related travel.
📌 Pro Tip: Mixed-use trips? Only business portions qualify for deductions
6. Professional Services & Tax Structuring
✔ Fees for CPAs, tax advisors, attorneys, and property managers are deductible.
✔ LLCs & S-corps can help reduce taxes and offer asset protection.
📌 Pro Tip: Consult a real estate tax strategist to structure your investments efficiently
💡 Don’t Overpay on Taxes!
Are you maximizing your deductions? Let’s discuss how to reduce your taxable income and optimize your real estate tax strategy in 2025.
INVESTOR FRIENDLY CPA® (IFC)
Top 5 Tax Deductions Real Estate Investors Shouldn’t Miss in 2025
Real estate investors can reduce taxes and maximize returns by leveraging these key deductions in 2025
1. Depreciation
✔ Residential (27.5 years) & Commercial (39 years) depreciation allows gradual tax savings.
✔ Bonus depreciation drops to 40% in 2025—a cost segregation study can help accelerate deductions.
📌 Pro Tip: Faster depreciation means larger upfront tax savings and improved cash flow
2. Interest Deductions (Including Personal Loans!)
✔ Mortgage & business loan interest for rental properties is fully deductible.
✔ Under the interest tracing rule, even personal loan interest qualifies if used for real estate investments.
📌 Pro Tip: Maintain clear documentation to support deductions
3. Repairs & Maintenance
✔ Routine repairs (painting, plumbing) are fully deductible.
✔ Major improvements (roofing, HVAC) must be depreciated over time.
📌 Pro Tip: Use safe harbor elections to expense certain improvements upfront
4. Travel Expenses
✔ Mileage, airfare, lodging, & meals for property management are deductible.
✔ Keep a mileage log to track business-related travel.
📌 Pro Tip: Mixed-use trips? Only business portions qualify for deductions
6. Professional Services & Tax Structuring
✔ Fees for CPAs, tax advisors, attorneys, and property managers are deductible.
✔ LLCs & S-corps can help reduce taxes and offer asset protection.
📌 Pro Tip: Consult a real estate tax strategist to structure your investments efficiently
💡 Don’t Overpay on Taxes!
Are you maximizing your deductions? Let’s discuss how to reduce your taxable income and optimize your real estate tax strategy in 2025.
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