Now that we've entered tax season, it's time to think about tax deductions. Almost everything you buy for your real estate business is tax deductible, so long as it is ordinary and necessary and the cost is reasonable.These deductions can really add up. For example, if you buy a $2,000 computer and use it for your business, you could deduct the full cost from your taxes. If you were in the 28 percent federal income tax bracket this would save you $560 in income tax. In effect, you'd be getting a 28 percent discount on the computer. The catch is you must really be in business and use the computer or other item you buy for the business. You can't deduct personal expenses. Here are the most common tax deductions taken by real estate pros: 1. Car deductions: The single most claimed ...
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