Click To View Links

Need a Real Estate Coach?

Tax Benefits for Rental Homes

by W. Been

I am buying my first home to use as a rental home. Are there any tax benefits for rental properties or any other programs for investment buyers that I can take advantage of?

Hello Mr. Been,

Thank you for coming by my website and asking a question. It is certainly a great question. However I'm not able to offer legal or tax advice.

What I did is look up the answer at for you. Below you will find a link to their website.

I have owned and rented several homes in the past. There are a number of tax benefits for doing so, I'm just out of touch since it's been awhile for me. I sold off all my properties back in the late 90's.

It is a good time to buy investment properties right now with the values so low. So I congratulate you for jumping in the market.

IRS Website

To give you a brief summary, this is what I understand it to mean.

It seems that the IRS considers cash or the fair market value of property no matter if real property or real estate as taxable income to you. You can deduct expenses of rental property. The are reported on form 1040 shcedule E.

Since most people operate on a cash basis, when rental income is received it is considered income for that month. The same goes for expenses, when you spend the money it's a deduction.

There are different expense you can deducted from rental income like depreciation, repairs and other kinds of operating expenses.

There are some special rules that you would want to pay attention to. Be sure to ask your accountant or tax person.

Just give that link above a visit for much more details.

Hopefully you find this helpful. You will need to seek the advice of a tax professional next year when you prepare your taxes to see how much you can save.

Kind Regards,


Comments for Tax Benefits for Rental Homes

Click here to add your own comments

Tax Benefits for Rental Homes
by: Pablo

Cool question and what an opportunity right now!! I too want to buy some homes to use as rentals. I appreciate the IRS response for tax purposes too.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Ask The Expert.

New Jersey Grants

Click on Image to Learn More

South Carolina Grants

Click on Image to Learn More

Recent Articles

  1. VA Construction Loan and Division of Tenants

    Mar 26, 18 03:08 PM

    Due to cost of living, property cost, and housing my husband (retired Navy), myself (retired wife) and 25 yr old son live together and have for over 5

    Read More

  2. Closing costs of FHA homes

    Mar 26, 18 02:33 PM

    I am wanting to purchase a small single family home for myself and I don't make a whole lot. I read about the debt to income ratio and I'm good on that.

    Read More

  3. Justin Tucker - Justin Tucker Real Estate Team

    Mar 12, 18 05:13 PM

    When I first got into the Real Estate business I would have never imagined the fun I would have helping people throughout Sumner County and the Greater

    Read More

Buyer Programs

fha loans

The FHA Loan Products

Home Buyer Grants

zero down home loans

Zero Down Home Loans

Follow Us On Twitter

follow me on twitter