The Realty Geeks Team-we care!

Who cares? It seems IRS does! Wall Street Journal had this recent story about how some real estate professionals, who also are real estate investors, are being scrutinized. The distinction is important for IRS, because full-time real-estate professionals, defined as someone who spends more than half of his working hours in real estate and ...

1. Mortgage interest paid - not the principal. With principal + interest mortgages, in initial years, when interest component of mortgage payment is higher, your tax break is higher as well. For Interest Only mortgages, all that is paid towards interest in deductible. 2. Property taxes paid to county - generally paid by you per month to lender as ...