Real estate investors who have owned real estate for several years will tell you how they’ve enjoyed the accumulated appreciation as well as the monthly cash flow. What other investment essentially pays for itself, appreciates in value and provides monthly income? Real estate of course but there are tax deductions for real estate investorsother benefits most valued when it’s time to file income taxes.

And this is the time of year when your accountant asks you to begin gathering anything and everything related to your real estate holdings to search and document income tax deductions. What can you expect to deduct?

Interest is typically the single largest annual deduction. Your lender will provide reporting forms listing the amount of interest paid last year before January 31.

What sort of repairs did you make last year? These repairs, both for materials as well as labor are deductible in the year paid such as replacing a hot water heater, paint and maintenance costs.

While properties can appreciate in value over time they can also depreciate due to age. Landlords are able to deduct a portion of this depreciation each year over time.

You can also deduct any travel expenses incurred when visiting your properties. You can use actual miles driven solely for real estate or you can itemize each expense as they’re charged such as tolls, car repair and fuel costs.

If you work from home, many are reluctant to claim a home office deduction due to the perceived likelihood of an audit. However, deductions for a home office are a legitimate way to reduce a tax bill.

You may also deduct the property taxes paid on your rental units as well as insurance premiums paid. Professional services such as accounting fees, real estate commissions and other real estate related charges are a potential deduction.

Every business will be a little different but these are the most common income tax deductions available to real estate investors. In order to find out which expenses are tax deductible in your situation, get with your tax planner or CPA for more information.