Home Buying in Humble>Question Details

Adriana, Home Buyer in Humble, TX

I´m considering buying a house for rental property. Are property taxes and insurerance premiums deductible from income taxes?

Asked by Adriana, Humble, TX Wed Aug 8, 2012

Help the community by answering this question:


Recommend to speak with CPA regarding tax write offs when owning an investment property

Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
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0 votes Thank Flag Link Thu Aug 9, 2012
In agreement with Oscar. Also don't forget that, depending on your mortgage, ONLY the interest, taxes, and insurance portion of your mortgage are deductible. If you are breaking even on your mortgage with rent you have the possibility for a tax liability at year end.

Example $1,374/month mortgage(Principle $200K loan @ 5% interest, taxes & insurance= $300) with $1,374/month in rent. Assuming year 1 of the rental with no other expenses your cash flow= $0. The tax liability at year end for the property would be $2,951, due to principle payments in first year. Deductions are Interest=$9,933 Taxes & Insurance=$3,600. Total rental Income $16,484 - $9,933(Interest)-$3,600(Taxes and insurance)=$2,951 Taxable Income.

Good Luck and due your due diligence on the property!

Disclosure: Please check with a tax professional about your personal circumstances.
0 votes Thank Flag Link Wed Aug 8, 2012
Most expenses will be deductible, but you will want to check with your CPA to verify which ones apply to your situation.
0 votes Thank Flag Link Wed Aug 8, 2012
Bruce Lynn, Real Estate Pro in Coppell, TX
It's best to ask your tax professional about any tax deductions you may be entitled to.
Web Reference: http://www.amandahomes.com
0 votes Thank Flag Link Wed Aug 8, 2012
Yes and so are any repairs, travel to the the property, HOA fees (if applicable), and any other expense you have to cover for the property. Remember to keep receipts and good log keeping. Best of luck. Let me know if you have any other questions.
0 votes Thank Flag Link Wed Aug 8, 2012
0 votes Thank Flag Link Wed Aug 8, 2012
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