Depreciation Owner Occupied Vs. Rental Am I On the Right Path

[Mark Anderson]

I am currently looking into buying a rental property. However I will pursue the deal that makes the most sense and wanted to confirm I am on the right track in regards to my understanding of tax write offs. I plan on working with an accountant once I have purchased a property but wanted to get an overall understanding of the tax writes off before purchasing a property. Owner occupied residence qIadplex and below my understanding -you have to occupy the unIt withIn 60 fays of purchasing It for It to be owner occupied -you can write off the interest and property tax to lower your overall income to a lower tax bracket. -any income from the rental over the interest and property tax would be considered ordinary income -you are able to to write off the depreciation of the real estate property over 27.5 years for the units you are renting and maybe the one you occupy as well. As long as your income is less than 150k -you can also itemize the depreciation of the flooring, appliances etc. for those unIts yoI do not occupy over a shorter period of time than 27.5 years -you can write off the cost of improvements to the units in which you do not occupy NOT Occupied Rental Property --you can write off the interest and property tax to lower your overall income to a lower tax bracket. -any income from the rental over the interest and property tax would be considered ordinary income -you are able to to write off the depreciation of the real estate property over 27.5 years for the units you are renting and maybe the one you occupy as well. As long as your income is less than 150k -for example if you make 50k at work and 50 k from rental income 100k gross earnings from the year you could subtract 1/27.5 years of depreciation let’s call it 50k and 30k of interest and tax so your tax able income would be 100k-80k=20k taxable income -how would being a real estate professional help me making under 150k Would appreciate any help or resources you could refer me to