What are the tax implications of owning rental properties?

What are the tax implications of owning rental properties?

Owning rental properties can have various tax implications, including rental income taxation, deductible expenses, and depreciation.

What expenses can I deduct from my rental income?

You can typically deduct expenses like mortgage interest, property taxes, repairs, property management fees, and insurance.

How does depreciation work for rental properties?

Depreciation allows you to deduct the cost of the property over a set period, usually 27.5 years for residential properties.

Are there any tax benefits for first-time rental property owners?

Yes, first-time rental property owners may qualify for certain deductions and credits, such as the first-time homebuyer credit.

What should I do if I have a loss on my rental property?

If you have a loss, you may be able to deduct it from your other income, subject to certain limitations and rules.