Taxes on investment properties can be high or low depending on how you take advantage of the available tax deductions. An investment property can include everything from single-family units to commercial properties which are purchased with the sole purpose of making a return on the investment. This means there are some specific tax laws regarding these properties, and it is important to understand how they impact your purchase.
One helpful tax dedication is available on interest. Mortgage interest paid to loans whether to improve the property and/or to acquire the property, can be deducted.
Repairs to the properties, insurance premiums and contractor wages are also deductible along with fees you may have paid to attorneys and other professional services in regards to the investment property.
If you are interested in more information about investment property tax benefits, please feel free to contact us to learn more.