Real Estate Investment: Tax Benefits and Depreciation Rules

Maximize real estate investment tax benefits with IRS guidance. Depreciation, deductions, and exchange rules.

Real estate investing offers significant tax advantages according to IRS rules. Rental property benefits: Depreciation deductions over 27.5 years, Deductible expenses (mortgage interest, repairs, management), 1031 exchanges for tax-deferred property swaps, Passive loss limitations apply. Active vs passive investor status affects deduction limits. Real estate professional classification allows unlimited loss deductions. Consider depreciation recapture when selling properties. Consult tax professionals for complex real estate transactions.\n\n**Related Resources**\n- [Financial Planning Tools](/tools)\n- [Budget Calculator](/budget-planner)\n- [Credit Guide](/category/Debt%20%26%20Credit)\n- [Money Saving Tips](/category/Save%20Money)