1. Purchase a home instead of rent or lease an apartment or home.  The interest paid on the mortgage is tax deductible.  Sometimes it’s actually more beneficial to purchase a home or condo instead of rent when the tax deductions are taken into account.
2. Purchase your car or luxury vacation with a home equity loan instead of a bank loan.  Again, the interest from a home equity loan is tax deductible, providing an advantage to funding automobile purchases or luxury items.
3. Pay your January mortgage bill in late December.  This way the interest on your mortgage payment for December will be included in your current years tax deductions instead of rolling into the next years tax deductions.
4. Purchase Property for Investment.  Most wealthy individuals already know that investment property provides the landlord some of the most advantageous tax benefits around.  Interest on the investment property loan, maintenance costs, property management costs, travel costs to the property, insurance costs, and repair costs are all tax deductible.  In addition, the property can be depreciated over a set amount of time, providing even more tax benefits weighing against the income received from tenants.
5. Start a home business and keep track of all expenses.  Self employment income has excellent tax benefits, including home office and travel deductions.  Keep a log of all travel related to your business and deduct those expenses at years end.
6. Max out your contribution to your explorers 401K and/or your IRA.  Funding these retirements accounts reduces your overall tax burden by lowering your total earnings by the amount contributed to these plans.  As an added bonus, the money invested in these accounts grows tax free.

Above are just a few examples of how one can achieve some IRA tax relief.  Look for more tax benefits for investment property owners in the article Investment Property Tax Deductions.

Other Articles:

• HUD Foreclosure Homes
• Cash Flow vs Capital Appreciation from Investment Property
• Investment Property Loans – Getting the best rates

Let’s look at some of the tax benefits landlords can take advantage of when owning investment properties.

• If a mortgage or other type of loan is used to purchase an investment property, the mortgage interest paid on the loan is tax deducible.  Points paid on a mortgage loan are also deductible, but generally spread out over the life of the loan instead of deducted in the first year like on primary residence mortgage loans.
• Insurance premiums paid on the home are tax deductible for the year they are paid.
• The purchase price of the home is tax deductible and spread over 27.5 years.  For example, if you paid $150,000 for a home, and $50,000 of the purchase price is the land value, you deduct $100,000 over 27.5 years, or $3,636 a year.
• Maintenance repairs made to keep the home in an acceptable condition for rental purposes is also considered a tax deduction.
• Management company fees are also considered a tax deduction if fees are paid to manage, maintain or assist with the landlord responsibilities of the rental home.
• Mileage driven to the home for maintenance, showings, collecting rent, or conducting repairs can be deducted using the per mile calculation each year designated by the IRS.
• Legal and tax preparation fees associated with the investment property can be a tax deduction as well.

After reviewing the list of tax benefits available to real estate investors above, it becomes apparent why so many investors look for real estate opportunities.  The list above is not conclusive, and the tax laws regarding investment properties changes yearly.  Consult with your IRS Tax Attorney or CPA to find out all the advantages that individual property investors can take advantage of.