5 Tips to help you save money during tax season- from a CPA

[Charles D. Smith]

1. Take advantage of depreciation: Depreciation is a tax deduction that allows you to recover the cost of your investment property over its useful life. By taking advantage of this deduction, you can reduce your taxable income and save money on taxes.
2. Keep track of all expenses: Be sure to keep track of all expenses related to your investment property, including repairs, maintenance, and property management fees. These expenses can be used to offset rental income, lowering your taxable income and saving you money on taxes.
3. Consider a 1031 exchange: A 1031 exchange allows you to defer paying taxes on the sale of an investment property if you reinvest the proceeds into another qualifying investment property. By taking advantage of a 1031 exchange, you can delay paying taxes and potentially save money in the long run.
4. Hire a professional accountant: A professional accountant who specializes in real estate can help you identify all the tax deductions and credits available to you, and ensure that your taxes are filed correctly and on time. This can help you save money by avoiding penalties and maximizing your deductions.
5. Keep up with changing tax laws: Tax laws related to real estate investments can change frequently. By staying informed and keeping up with these changes, you can take advantage of new tax breaks and avoid costly mistakes that could lead to penalties and higher tax bills.