Intelligence

Tax Reform Makes Owning Rental Properties Better Than Ever

The most recent round of tax reform resulted in an expansion of certain tax breaks for rental property investors. This story will look at how would-be landlords can take advantage.

1. In general, is now a good time to invest in real estate
considering the recent volatility in the market? What benefits
are associated with real estate investing, long-term?

2. The 20% pass-through deduction is designed to benefit small
businesses but rental property owners can also cash in. How can
real estate investors take advantage of this deduction, and how
much tax savings can it potentially yield?

3.Another tax incentive for real estate investors is the
expansion of the Section 179 deduction. Again, how much could
this deduction be worth for a rental property owner making
improvements to an existing property, and what’s most important
to know about using it?

4. What does the temporary 100% bonus depreciation limit cover
for property investors? Will it be more advantageous to use this
deduction until it expires in 2020, versus the current de
minimis safe harbor election?

5. How do the updated income tax brackets affect investors who
are claiming rental income on their taxes?

6. Are there any other tax issues or tax updates that investors
who are considering a rental property need to be aware of?