Does Owning Rental Property Help With Taxes?

Does owning rental property help with taxes?

In a word, yes!  There are many ways to save on taxes, but owning rental property will definitely do so.  Here are 3 categories where owning rental property will help.

Accelerated Depreciation

Accelerated depreciation uses the Modified Accelerated Cost Recovery System (MACRS) method of depreciation.  This allows the taxpayer to establish shorter depreciation periods for qualifying assets.  In order to do so properly, this requires an engineering based cost segregation study.  The IRS states, “…Cost Segregation, for it to be properly applied, had to involve those with competencies in architecture, engineering or construction and/or construction techniques, in order for personal property assets to be accurately identified and segregated.”  This statement from the IRS is very clear.  The accounting profession of all stripes is unqualified to apply cost segregation…no disrespect intended, but the facts are clear.  As a taxpayer, it is incumbent upon you to do your own due diligence.  Confirm this information yourself.  Check out the IRS website for cost segregation.

Deductible Expenses

This is a lengthy list, including but not limited to, operation expenses, loan interest, payroll taxes, property repairs, and on and on.

Proper Planning & Strategy

It is vitally imperative that one always seeks professional help when seeking ways to save on taxes.  Tax attorneys, CPAs/accountants, Estate Planners, and those who directly work with assets affected by taxes.  Those would include cost segregation professionals trained in, and fully knowledgeable of, income and property taxes, and how they impact the taxpayer.

Questions or comments?  Contact us at


Source 1: Does Owning Rental Property Help With Taxes?
Source 2: Maximizing Tax Benefits from your Rental Portfolio

This entry was posted in Accelerated Depreciation, Accelerates Depreciation, Amarillo Cost Segregation, Austin Cost Segregation, Birmingham Cost Segregation, Commercial Real Estate, Cost Segregation, Dallas Cost Segregation, Del Rio Cost Segregation, Denver Cost Segregation, Franklin Cost Segregation, Houston Cost Segregation, Income Tax, Income Taxes, Lubbock Cost Segregation, Nashville Cost Segregation, New York Cost Segregation, Rental Property, Rental Real Estate, Residential Rental Property, San Angelo Cost Segregation, San Antonio Commercial Real Estate, San Antonio Cost Segregation, Seattle Cost Segregation, Waco Cost Segregation. Bookmark the permalink.