What are the tax benefits of owning rental property?

[Brennan MarLett]

Ex. Owner occupied duplex in Sacramento. 

please speak English...thanks!

[William Murrell]

Depreciation is a big one.  The house itself ages and things like kitchens and roofs have useful lives so you're allowed to deduct that from your taxable income.  Totally made up number example: you make 100k ordinary income at your job. You are taxed on all 100k.  If you have a rental and it depreciates at 10k, then you are taxed on only 90k (100k income- 10k depreciation= 90k taxable).  So you don't save 10k, but you save the taxes you'd pay on 10k worth of income. 

 There's also the expenses you save for repairs, mgmt, hoa fees, etc. They can be deducted and they can add up quickly.  

If you're an owner occupied duplex though, I think you only get to do it on half the property though.  I'm sure someone else can chime in on that part.  And don't be afraid to talk to a cpa!