Homeownership has its perks. You have a place to call home that you can decorate, remodel, and renovate as you choose. You build equity as you pay down your mortgage. You can also deduct certain expenses like mortgage interest and property taxes, which helps lower your tax bill for the year.
Real estate investors enjoy perks, too, but they go beyond the typical benefits of homeownership. Real estate investments can provide:
While nobody likes to pay real estate taxes, homeowners and investors can take advantage of numerous tax breaks that reduce the amount they owe.
Because tax laws are complex and change periodically, you should work with a trusted tax accountant or CPA to ensure you get the most favorable tax treatment possible.
Still, it’s helpful to have at least a basic understanding of what you’re getting into tax-wise when you own or invest in property. Here’s an introduction to real estate taxes to help you get started.