What Are the Tax Benefits of Being a Landlord?

Are you a landlord who is considering residential property management in Atlanta? There are many benefits of owning rental properties, one of which is the tax benefit. Tenants rarely get any tax benefit from paying rent, but the tax systems in almost every state greatly favor landlords. In fact, real estate has more tax benefits available than many other types of investments.

Tax Benefits of Being a Landlord in Atlanta

Tax Deductions
Mortgage interest and real estate taxes will likely be your biggest deductible expenses, but there are plenty more that you can take advantage of. You can also deduct all operating expenses related to your rental properties and your rental company, from maintenance costs and utilities to travel expenses, employee salaries, and office supplies. You are also able to deduct the cost of your insurance premiums and legal services. You can also get back the expense of your real estate investment through depreciation, or making a tax deduction for part of the cost of the property over several years.

Taxpayer-Friendly Sales
If you end up selling a property that you have owned for at least a year, the federal tax rate of the sale cannot exceed 20%. The appreciation of your rental property will not be taxed until you sell, and you can access a tax-free portion of the appreciation prior to selling by refinancing the property or taking out a second mortgage on it.

Tax Losses
Even tax losses result in deductions for landlords. If your property produces a tax loss that is offset by passive income, you can deduct for that loss. Additionally, there are greater tax benefits for owners of rental properties who are considered active managers. If you vet your tenants via tenant screening practices like background checks and credit checks, you may qualify as an active manager. Active managers can deduct up to $25,000 in losses.

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What Sets Mark Teytel Apart?

  • Broker-Owner Since 1998
  • NRBA, NAMAR and NAR Member
  • Real Estate Professional Since 1994
  • John Marshall Law School Graduate
  • Annually, Manage and Sell Over 300 homes
  • Gwinnett Daily Questions and Answers Columnists
  • West Law Award Recipient For Business Excellence
  • Phoenix Award Recipient - Top Real Estate Producer
  • Radio Show Host and Guest Expert for WSB and WGST
  • Five Star Institute, Equator, Resnet Certified REO and Short Sale Expert