Many people in the Houston area have discovered the many benefits of real estate investments. Choosing to invest in turnkey properties for instance, will provide you with great returns and in most cases is less risky than other types of Houston real estate investment. On top of that, you will find that there are great tax benefits that come from real estate investment. Since this type of transaction is considered a business transaction and not one that a home owner would make, you will see that you will actually make income from your investment and be able to deduct it, when the time for tax filing comes.
General Deductions You May Be Eligible For
There are many deductions that you may be eligible for when it comes to Houston real estate investment. For instance, the interest that you paid on your mortgage can be deducted in the same way that it would if you were paying a regular home mortgage. This will allow you to prevent the taxation of a set amount of income that you are earning from your property.
You should keep in mind that you would still need to pay some taxes on the property that you own, but since you own the property, you can deduct these payments from your taxes. This means that the higher your property tax is, the more you will be able to save on your taxes.
You Will Get More Benefits than Typical Homeowners
If you are a homeowner actually living in the home, you will not be able to deduct the cost of your insurance premium when tax time comes around. However, as the owner of an investment property, you can certainly consider those insurance payments as a tax deduction. On top of that, if the bank owns your property, you will be able to count repairs and renovations as tax deductibles as well. By deducting these costs, you will find a lot of savings on your tax returns.
It is very important, before you go ahead and start taking these deductions, that you talk to a tax professional. They will not only be able to help with the deductions mentioned above, they may be able to find other deductions that you will be eligible for if you decide on real estate investment.
If you are considering Houston real estate investment, contact Texas Turnkey Properties. By selecting Texas Turnkey Properties, you get more than just a management solution for your Texas investment property. To know more visit them.