Austin Investors, Do You Understand Your Rental Property Tax Deductions?

Posted by David Kanne on Sunday, April 13th, 2014 at 1:32am.

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 expertise needs to be employed.  For example, when constructing leveraged rental property proforma statements, mortgage interest should not be included as an operated expense but should be included as an operating expense for tax purposes.  Austin City Realty’s real property investment division has the skill and expertise to successfully represent even the most experienced real estate investor.  For more information about investing in Austin, please email

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