You can deduct expenses like mortgage interest, property taxes, insurance, repairs, and maintenance costs from your rental income.The biggest advantage is depreciation—this allows you to deduct a portion of the property’s value (excluding land) over time, significantly reducing taxable rental income.

You can add Schedule C or Schedule E to your personal form 1040 return to handle taxable income. 

This gives you up to 25% reduction on your taxable value but not more than the prior value. 

These expenses would lower your taxable income and further reduce your overall tax liability.

I have a rental home and another person wants to invest $100k and become tic and share in costs profits etc when I receive this money does the irs consider it a sale of the property and taxable or an investment and n’ont taxable?

And year 2 through 5 now lose $200 of depreciation expense causing taxable income to go up for each of those years.

You can deduct expenses like mortgage interest, property taxes, insurance, and repairs, as well as depreciation on the building (but not the land), which helps reduce your taxable rental income.If you refinance, any interest paid on the new loan would also be deductible.

My intention was to minimize my reported taxable income after taking expenses against the earnings through the LLC.

For example, if your rental generates $25,000 in income and you have $10,000 in depreciation, it can reduce your taxable rental income to $15,000.Happy to discuss this further.

Although this 5.5% to 6% is taxable, it still enables them to offer above the 70% guideline.Experience also plays a key role.