Question on Taxes for my Rental

[Dave Wolfe]

Hello,

I am a new member here as well as a new investor in the real estate business. I was wondering if someone could explain the tax advantages that I get by renting out a property.

I have a property that is actually 2 houses that is on one lot. I live in one of them and I rent out the house in back of me.

I was doing some research from the " Real Estate Investing" by the McGraw-Hill book and it said " Because real estate often provides a tax buffer between regular income (such as income from your job) and your real estate investment income due to depreciation, it is likely that some if not ALL of the cash flow from real estate investments will be TAX FREE"

I have been reporting the income to my tax consultant every year but should I be doing something different and do I really get a different "tax break" because of the income that I am getting?

Any information would be appreciated.

btw...I also owe money on the property if that should make a difference in some way.

Thanks

Dave Wolfe