Owning rental property in New Orleans comes with several tax benefits that can help investors maximize profits. One of the biggest advantages is the ability to deduct mortgage interest, property taxes, and insurance premiums from taxable income. These deductions reduce overall tax liability, making rental investments more financially rewarding.
Depreciation is another major tax benefit. The IRS allows property owners to deduct a portion of the property’s value each year, even if it is appreciating in market value. This can significantly lower taxable income.
Landlords can also deduct maintenance and repair costs. Expenses such as plumbing fixes, HVAC servicing, and property management fees are all eligible for tax deductions. Travel expenses related to managing rental properties, such as mileage and lodging, may also be deductible.
To fully leverage these benefits, working with a New Orleans Property Management Services can help ensure proper record-keeping and compliance with tax regulations while maximizing deductions.