Buying an Investment Rental Property Under the TCJA
This article from Onerent, was originally posted at OpenListings.com.
Given the new tax law enacted in 2017, investing in real estate has some potential implications for a new investor. Most consider the changes extremely beneficial to first-time real estate investors in particular.
To cover the basics first, the previous tax structure allowed for real estate investors to write-off all the expenses of owning and running a rental as those properties are considered a business operation. In addition, any interest on the mortgages for those investments along with any repair or management costs could be deducted pre-tax on the total income of the property so that the property owner is only taxed on the actual cash flow they’re earning from the investment.
None of these existing standards changed in the new tax law but, there are some new additions to look out for that could incentivize real estate investing and lower home sale prices.
Read the above article from Onerent for more information.