Keep More, Earn More: Unlock Tax Breaks Through Real Estate Investments
Jan 22, 2025
Real estate is more than just a wealth-building strategy—it’s a way to keep more of what you earn. If you’ve ever felt like taxes take too big a bite out of your hard-earned money, real estate could be the game-changer you didn’t know you needed. Here’s how savvy investors are using real estate to maximize their tax advantages—legally and lucratively.
Depreciation: The Tax Benefit You Didn’t Know You Needed
Picture this: you own a rental property that grows in value every year. While that happens, you’re also deducting a portion of the property’s value from your taxable income annually. That’s depreciation—a silent hero of tax savings. With this benefit, your property can appreciate while your taxable income shrinks. With Depreciation, you can spread it across many years (27.5 years I believe) to spread out the deduction or you can use accelerated Depreciation to take most of it now and REALLY reduce your immediate taxes.
Mortgage Interest Deductions: Turn Payments into Savings
Hate mortgage payments? Here’s some good news: the interest you pay on loans for rental properties is typically tax-deductible. Every payment lightens your tax load and helps you grow your portfolio faster.
Tax-Free Exchanges: Grow Without the Tax Hit
A 1031 exchange lets you sell one property and roll the profits into another, deferring taxes on the gains. This strategy allows you to grow your real estate portfolio without immediate tax consequences—a win for serious investors.
Operating Expense Write-Offs: Hidden Savings Everywhere
Did you know that many expenses tied to your rental property are tax-deductible? Maintenance, property management fees, utilities, and even marketing are just a few examples. When managed wisely, these deductions can make a huge difference in your net income. Regardless of your political views, during Donald Trump's first stint as President, he pushed for (and got) an amazing real estate tax deduction. The first 20% of your income from real estate is tax free.
Why This Matters for You
Investing in real estate isn’t just about creating income streams—it’s about financial strategy. When you take full advantage of these tax breaks, you’re not only earning smarter, but you’re also keeping more of every dollar. That’s the kind of financial freedom we’re building at Unbroken Investing.
Want to dive deeper into strategies like these? Join Unbroken Investing’s Premium Membership and we show you how to get hundreds of thousands of tax-free dollars from your real estate.