What kind of tax advantages can I receive by Owning Rental Real Estate?
You can depreciate the structure (not the land) as if it would be worth nothing at the end of the 27.5 years! Of course we allknow that the property will probably be worht much, much more in 27.5 years than it is now – not less. Nevertheless, on a $100,000 house (assuming, for example sake, the structure is worth 80% of the total) we are allowed to write off nearly $3,000 in depreciation alone each year. Other tax advantages are available to real estate investors for interest, property taxes, insurance, repairs, inspections, etc.
