Rental Property Tax Breaks

[Thomas Dunsmore]

I am very close to closing on my first single-family home. The numbers look good for my wife and me but I was curious as to what we should expect to actually pay in property taxes at the end of this year. The property is in San Antonio, TX and before any tax breaks, the taxes will be roughly $4,300. Should we expect any sort of tax savings due to it being a rental property? If so is there a certain percentage that we can bank on?

Thanks, everyone!

[Nathan Gesner]

You can't reduce the amount of property tax you pay, but there are other tax benefits:

1. Deduct your expenses: taxes, improvements, insurance, mortgage interest, etc.

2. Depreciation

3. Pass-through deductions

4. Capital Gains

5. 1031 Exchange

There are others. I recommend finding a book on tax strategies (see BiggerPockets bookstore) and discuss this with a CPA.