Tax planning for real estate investors and landlords
Rental income can be taxed very differently from wages, and the rules on depreciation, losses and exchanges reward careful planning. This site explains the main tools and the mistakes that cost investors money.
Start with depreciationThe core issues
Depreciation
Residential rental property is generally depreciated over a long recovery period. Cost segregation can accelerate deductions, with trade-offs.
Read the guide →Passive losses
Rental losses are often limited by the passive activity rules. Real estate professional status and short-term rental rules can change the answer.
Read the guide →1031 exchanges
A like-kind exchange can defer gain on investment property, but strict deadlines and rules apply.
Read the guide →Common investor questions
- Can I deduct my rental losses against my wages?
- Is cost segregation worth the study fee for my property?
- What counts as a real estate professional for tax purposes?
- What happens if I miss a 1031 exchange deadline?
- Are my short-term rental profits taxed like a business?
- How should repairs be separated from improvements?
Answers are in our FAQ, with deadlines and current news.
From our network
Related readingIf your rental activity is run as a business, see choosing a business structure on BusinessTaxSaver. If you are a physician or dentist investing in property, see CPAforPhysician. For founders and startup investors, see StartupTaxCPA.