Real Estate Write-Offs – Every Deduction Investors Should Know 💸🧾
Real Estate Write-Offs – Every Deduction Investors Should Know 💸🧾
If you're not tracking and using every write-off available as a real estate investor, you're leaving money on the table.
Write-offs aren’t just about paperwork — they are how you legally keep more of what you earn.
This blog walks you through the most powerful deductions and how to maximize them like a seasoned investor.
📋 What Counts as a Real Estate Write-Off?
Any ordinary and necessary expense for your rental or investment business is deductible.
That includes:
Mortgage interest
Property taxes
Repairs and maintenance
Insurance premiums
Property management fees
Utilities (if you pay them)
HOA dues
Legal and accounting fees
Software or business subscriptions
If you use it to operate your business, it's likely deductible.
🚗 Vehicle + Travel Deductions
Yes — driving to your rental property counts.
You can deduct:
Mileage (IRS rate, over 65 cents per mile as of 2025)
Tolls and parking
Airfare/hotel if visiting out-of-state properties or attending real estate events
Pro Tip: Keep a simple mileage log (app or paper) — it adds up fast.
🛠️ Repairs vs. Improvements (Important Distinction)
Repairs = deductible in the year you pay them (e.g. fixing a broken toilet)
Improvements = capitalized and depreciated over time (e.g. new roof)
Knowing the difference affects your current year tax bill.
Pro tip: Smaller upgrades can often be classified as repairs — consult your CPA.
🏢 Home Office Deduction
If you manage your real estate business from home, you may qualify to deduct a portion of:
Rent or mortgage interest
Utilities
Internet
Depreciation on your home
Requirements:
Must be used exclusively for your business
Needs to be your primary place of admin work (not just a side desk)
🧠 Professional Services & Education
You can deduct:
CPA, attorney, and bookkeeper fees
Paid coaching, masterminds, and real estate courses
Industry books, subscriptions, podcasts
Education = deduction if it improves your existing business.
✅ Final Thoughts
Tracking your expenses and working with a tax-savvy CPA can put thousands back in your pocket each year.
Write-offs aren’t loopholes — they’re the rules. Master them, and you’ll boost cash flow and build wealth faster.