How much do some expenses matter if you can write them off?

[Andrew Giunta]

I could be wrong because the US tax code is very confusing, but how much do certain expenses like property tax, or property management fees matter if you can write them off? Im not sure if there is some sort of cap, but if Im using an LLC with my properties inside it, there seems to be a ton I can write off. If im doing it right, what percentage (roughly) of the income a house generates should I be able to write off?

[Brian Schmelzlen]

The expenses all matter because even though you can write off all the business/rental expenses the cash effect is only equal to (total expenses * tax rate).

If you have an expense of $100 and are in the 25% federal tax bracket (lets say no state taxes), at the end of the day you are still out $75.

There is not a maximum amount of valid expenses that you can write off.

In terms of what percentage of income should you be able to write off, there is a general rule of 50% of the rental income will be spent on operating expenses (after that you have to figure in your debt service expense).