Its safe to say that Austin’s real estate market is hot right now. As a result, investors are jumping into the market to not only take advantage of Austin’s increasing property values but its rental rates as well. Fortunately for real estate investors, US tax law provides investors with the ability to reduce their gross rental income tax liability. Specifically, the owner of a rental property can deduct the money they spend on their rental property’s mortgage interest, maintenance, and repairs (to name a few) from the property’s gross rental income before calculating taxable income. As a result, the property owner’s tax liability can be greatly reduced.
It is important to note that when analyzing investment properties, careful consideration and
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