Rental Property Tax Essentials: Top Tips & Updates for 2023 You Need to Know

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How can you take advantage of tax strategies for rental properties in order to maximize investment returns? In this episode of the Small Business Tax Savings Podcast, Mike talks about the different types of depreciation such as straight line, accelerated bonus, and section 179, how cost segregation can be used to accelerate depreciation, and how losses from rental properties can be used to offset other income.

Mike covers Mortgage Interest, Property Taxes, Insurance, Repairs and Maintenance, Travel Expenses, and Hiring Your Kids.  

Tune in now and hear Mike discuss leveraging tax strategies for rental properties to maximize investment returns!

[00:24] Exploring Depreciation Strategies For 2023

• Today’s topic is, “Rental Property Tax Essentials”
• Rental properties are a great way to save money on taxes and grow your business
• Depreciation is a powerful tax savings tool for rental property owners

[02:06] How To Leverage Cost Segregation Studies

• Different types of depreciation can be used, such as straight line, accelerated bonus, and section 179
• The Tax deductions available for rental properties, such as:
• Mortgage Interest
• Property Taxes
• Insurance
• Repairs
• Maintenance
• Travel Expenses
• Real Estate Investments and cost segregation studies

[07:45] Exploring The Short Term Rental Loophole

• Passive losses can only offset passive incomes
• Strategies to maximize losses include becoming a real estate investor or professional
• Qualifying as a real estate professional can use losses to offset W2 income and business income
• Qualifying as a real estate professional can be difficult for high-income earners

[16:23] Closing Segment

• Mike advises listeners on how to leverage tax strategies for rental properties in order to maximize investment returns!
• Final Words

Key Quotes

“Depreciation is a powerful tax savings tool, and it's one of the reasons that so many people can get into real estate, rental properties, and utilize losses from that rental property to offset their income.” – Mike Jesowshek, CPA

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Podcast Host: Mike Jesowshek, CPA - Founder and Host of Small Business Tax Savings Podcast

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