What are the tax benefits of operating rental properties?

Operating rental properties offers several tax benefits, making real estate investment attractive for many individuals. The most significant tax advantage is the ability to deduct expenses related to property management, repairs, maintenance, insurance, property taxes, and mortgage interest. Additionally, owners can depreciate the value of the property over time, which can offset rental income and reduce taxable profits. If the property is sold for a profit, investors may also benefit from long-term capital gains tax rates, which are generally lower than ordinary income tax rates. Investors who make energy-efficient upgrades to their properties may also qualify for additional tax credits. Proper tax planning and working with a tax professional can help maximize these benefits.