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4 Top Tax Benefits Offered On Investment Property

Taxes are a reality of life. So in this blog post, you’ll read about the 4 top tax benefits offered on an investment property. Read all the way through because you might find a benefit that you didn’t realize was available to you!

When it comes to the benefits of owning investment property, you might be pretty focused on the returns. But returns are not the ONLY benefit. You can also use the tax system to help you benefit, too! Here are 4 top tax benefits offered on investment property, but you might find even more for the investment you’re doing, so make sure you talk to a tax attorney.

4 Top Tax Benefits Offered On Investment Property #1

The first tax benefit to discuss is several benefits all rolled into one: As an investor, you own a business. That means you may be able to claim business expenses (and even some home office or car expenses) on your taxes. These tax benefits can help you minimize your taxable income (and therefore the tax you pay). Just be aware, though, that excessive business expenses are a red flag for the IRS to take a closer look at your income tax return. Claim everything you legally can but make sure you have receipts and good bookkeeping to back it all up.

4 Top Tax Benefits Offered On Investment Property #2

Here’s a surprising tax benefit you might not have been aware of: If you acquire the property in your IRA or 401(k), you can sometimes enjoy tax-minimized, tax-deferred, or even tax-free real estate investments! This is a powerful way to invest while also getting the maximum tax benefits available. However, this is something you need to do additional research on because it depends on several factors and the type of Retirement Account you have.

Give us a call at (810) 309-9371, and we’ll see about making an introduction with someone who can help you understand how to invest in your IRA or 401(k).

4 Top Tax Benefits Offered On Investment Property #3

You may even qualify for a neighborhood beautification tax benefit from your municipality. This varies from one city to the next and even from one neighborhood to the next, but check with the municipal government in charge of your town or city in Michigan to see if there are tax benefits offered for you.

4 Top Tax Benefits Offered On Investment Property #4

Depending on your investing and how you acquire your investment, you might also gain some tax benefit by living in your investment property. This won’t work if you invested in it through your IRA. Still, if you just bought a duplex and you live on one side and rent out the other, or if you have a basement suite that you rent out, there might be tax advantages associated with the property being your primary residence.


We’ve listed 4 great tax benefits in this blog, but these aren’t necessarily the only ones. Use this information as a guideline and make sure you talk to a tax attorney who will probably find you even more tax benefits when they know your specific situation.

There are many benefits when it comes to investing: there are the returns, of course, but there are also some tax benefits. If you want to invest in real estate and explore what tax benefits are available to you, click here and enter your information or pick up the phone and call (810) 309-9371.

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