How to Save Money on Your Real Estate Property

[Julio Gonzalez]

There are multiple ways to put more money back in your pocket when it comes to real estate property. Here are my top 8 ways to save you money.

1. Energy Efficient Deductions (179D) – Your property may be eligible for this deduction if the property uses energy efficient assets such as Windows, HVAC, lights, roofs, etc. and is 4+ stories.

2. Energy Efficient Home Deductions (45L) – Your property may be eligible for this deduction if the property uses energy efficient assets such as windows, roofing, high R value insulation, doors or HVAC and the property is 2 stories or less and considered a residential property or apartment.

3. Bonus / Accelerated Depreciation – This allows you to deduct a large portion of the eligible assets purchased in the first year.

4. Amortization – Amortize or deduct the useful life of intangible assets each year that are included within your building.

5. Cost Segregation – You can write off more depreciation in the first few years of owning the building. This oftentimes uncovers additional tax savings and allows you to utilize bonus and accelerated depreciation.

6. Interest Expense – The interest that you incur on the mortgage related to your real estate property is tax deductible.

7. Repair the Property rather than Improve – You can deduct a large portion of the repairs of each item if you claim them as a repair rather than an improvement.

8. Historic Tax Credits – If you rehabilitate historic buildings that are part of the National Register of Historic Places, you can receive a tax credit for qualified expenditures.

What are some other ways you have utilized to save money on your real estate property?