How much in real estate expenses can I write off on my taxes every year?
Q: How much in real estate expenses can I write off on my taxes every year? (Part 1)
-Pete, Caldwell, NJ
A: That’s a good question, Pete. The answer to your question is that you can write off as little as up to $25,000 and as much as however large your real estate loss is depending on your IRS classification. The amount of real estate expenses that you can write off every year on your taxes depends in part on how the IRS categorizes you and your real estate activities. In my next installment I’ll take this question further and reveal the 4 types of real estate investor definitions/classifications that the IRS has. Thanks for your question, Pete. Good luck. For more real estate tips and information, visit performanceproperty.com. I’m Gerald Lucas and I’ll see you again soon.