Advice Needed on the Tax Advantages with rental income investment

[Patrick Orah]

Hello BP community, I am looking for advice confirming what I think I know about tax advantages with rental income and help filling the gaps on some of the tax advantages/strategies that I may be missing.

To begin, I believe the rental income counts as regular income (correct me if I am wrong).

What I know already about tax liability reduction strategies are (correct me where I am wrong):

• Mortgage interest
• Mortgage Insurance (PMI if applicable)
• Property Insurance
• Property taxes
• Property depreciation
• Property HOA (if applicable)
• Property capital and maintenance expenses

Questions that I have about tax reduction or write-offs:

• Can we use the debt (mortgage payment) as a write-off? In other words, if I have a principle and interest payment of $850 per month, can I use that to reduce the tax liability on a rental income of $1,800 per month?
• If the mortgage is higher than the rental income, can I write-off the loss?

Is there anything else, that may be common knowledge to the community, on what we can use to reduce our tax burden with rental income properties?

Are these tax advantages different between residential and apartment building investing?

Thanks in advance for your input.