Can You Deduct Mortgage Interest on a Rental Property?
If you own a rental property and derive rental income from it, there are expenses that you can deduct on your tax return. These include operating expenses, property tax, depreciation, repairs, and mortgage interest. The mortgage interest deduction is a tax incentive for homeowners, which can sometimes apply to rental property.
How to Report the Sale of Inherited Property On a Tax Return
President Biden in April of 2021 proposed the removal of a key tax advantage for real estate called the step-up in basis for inherited property. Anyone who’s dealt with inherited property likely knows how important the step-up in basis can be for real estate that’s transferred to heirs upon the owner’s death.
How to Report the Sale of Investment Property on Your Tax Return
Selling a rental property falls under different taxation rules than the sale of your primary home. When you sell a rental property, it is considered the sale of a business asset and is treated differently. You must report the sale to the IRS, and it is important to know what to report and where to report it.
What Closing Costs Are Tax Deductible When Selling Rental Property?
If you are an investor selling a rental property, you are likely looking for all of the income tax deductions you qualify for, including what closing costs are tax deductible.
What Is Ad Valorem Tax, and How Do You Calculate It?
An ad-valorem tax is a tax that is levied on the assessed value of real or personal property. The Latin term ad-valorem translates to English as “according to value.” These taxes can be annual taxes like property assessments or transactional taxes like sales taxes.
What Is Tax Assessed Value, and How Do You Calculate It?
Paying taxes is unavoidable in making money, whether you earn income through wages or investments. However, investors can seek to manage their tax liabilities through various means, including deferral. One valuable tool is understanding the different taxes, how they apply to your investment holdings, and how the tax amount is determined.
