Landlord up and avoid paying taxes! Depreciation and write-offs are so hot right now. - Video

Tax day has come and gone, but never too early to start planning for next year. So...who wants a legitimate deduction from their income?!

Depreciation is a tax deduction that allows property owners to recover the cost of the property over its useful life. However, it's not a direct tax credit or exemption; instead, it reduces your taxable income. When you depreciate a rental property, you can deduct a portion of its value each year as an expense against the rental income you receive.

This deduction can provide significant tax benefits, as it reduces your taxable income without requiring any cash outlay. However, when you eventually sell the property, you may be subject to depreciation recapture tax, which means you'll have to pay taxes on the depreciation deductions you've claimed over the years.

Consulting with a tax professional or accountant who specializes in rental properties can help you navigate the complexities of depreciation and ensure you're maximizing your tax benefits while staying compliant with tax laws.

Todd French
Hawaii Mortgage Experts
[email protected]
NMLS: 2405547/968243

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