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Real Estate Nov 10, 2025 9 min read
Tax Deductions Every Real Estate Investor Should Know
Maximize your rental property deductions with this comprehensive guide to real estate tax benefits.
Real estate offers some of the best tax benefits in the tax code.
Depreciation
You can deduct the cost of the building (not land) over 27.5 years. This "phantom expense" can offset positive cash flow, allowing you to make money tax-free.
Repairs vs. Improvements
Repairs (fixing a leak) are fully deductible immediately. Improvements (adding a new roof) must be depreciated over time. Understanding the difference is key.
Pass-Through Deduction
Rental income may qualify for the 20% QBI deduction.