Discover published sets by community

Property tax is a tax on real estate owned by individuals or businesses based on the assessed value of the property.

Depreciation is an income tax deduction that allows a taxpayer to recover the cost of wear and tear on rental or investment property over time. For residential buildings, this is commonly done over 27.5 years.

Capital gains tax is a tax on the profit made from selling a property for more than its purchase price.

A 1031 exchange allows investors to defer paying capital gains tax on the sale of a property by using the proceeds to purchase a like-kind property.

This deduction allows homeowners to reduce their taxable income by the amount of interest paid on a mortgage debt for a primary or secondary home.

A special tax status that allows real estate professionals to deduct all of their rental losses against other income, without limitation, subject to qualifying criteria.

Taxpayers can deduct the real estate taxes they pay on their property from their taxable income.

Revenue received from renting out a property, which is subject to income tax and must be reported to the IRS.

Limits the amount of losses from passive activities (like most real estate investments) that can be deducted against non-passive income.

A tax savings strategy that allows property owners to accelerate depreciation deductions by identifying personal property assets within a building that can be depreciated over a shorter period, thus increasing their upfront tax deductions.

Deduction for the business use of a home, which allows for a portion of expenses like mortgage interest, insurance, utilities, repairs, and depreciation to be deducted from taxable income.

A REIT is a company that owns or finances income-producing real estate and offers certain tax advantages, including acting as a pass-through entity to disperse at least 90% of taxable income to shareholders.

An adjustment made to the basis of a property for tax purposes, which can affect the capital gains calculation upon sale. The basis is typically the property's cost plus improvements and minus depreciation.

Homeowners may exclude up to $250,000 ($500,000 if married filing jointly) of gain from the sale of their primary residence from their taxable income, provided they've lived in the home for at least two of the last five years.

A period when a rental property is not occupied by a tenant and not generating income, it can still incur tax-deductible expenses such as mortgage interest and property taxes.

Assessed value is the dollar value assigned to a property for purposes of measuring applicable taxes. It is often a percentage of the property's fair market value (FMV).

Improvements are capital expenditures that add value to the property or extend its life, while repairs maintain the property's current value. Improvements are depreciated, while repairs can be expensed in the year they are incurred.

Taxes imposed by local governments for improvements such as streets and sidewalks that directly benefit the property owner. These are not deductible as real estate taxes.

Part of the pass-through tax deductions created by the Tax Cuts and Jobs Act (TCJA), that allows eligible landlords to deduct up to 20% of their qualified business income from rental real estate activities.