Invest in Real Estate and Never Pay Income Tax Again?

It's possible! Learn the tax benefits of investing in real estate

April 15, 2025

In partnership with

Former Zillow Execs Target $1.3T Market

The wealthiest companies tend to target the biggest markets. For example, NVIDIA skyrocketed nearly 200% higher in the last year with the $214B AI market’s tailwind.

Created by Zillow’s founding team, Pacaso brings co-ownership to a $1.3 trillion real estate market. And by handing keys to 1,500+ happy homeowners, they’ve made $100M+ in gross profits.

Now, with aggressive global expansion underway, Pacaso’s ready to grow this disruptive model on a global scale.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com.

💸 It's Tax Day... but it doesn’t have to hurt.

If you're a real estate investor, the tax code is full of ways to help you keep more of your hard-earned money. From mortgage interest to depreciation to powerful strategies like 1031 exchanges, here are 10 tax benefits that can seriously reduce your bill and boost your returns.

  • Mortgage Interest Deduction: Deduct the interest you pay on your investment property mortgage, especially helpful in the early years.

  • Depreciation: Deduct a portion of your property's cost over 27.5 years, even if the property's value is increasing.

  • Property Tax Deduction: Deduct property taxes paid on your investment properties to reduce your overall tax burden.

  • Operating Expenses: Expenses like repairs, maintenance, and property management fees are deductible.

  • 1031 Exchange: Defer capital gains taxes by reinvesting proceeds from a property sale into a similar property.

  • Qualified Business Income (QBI) Deduction: Deduct up to 20% of your qualified business income from real estate investments.

  • Passive Activity Losses: Offset other passive income or, in some cases, non-passive income with real estate losses.

  • Home Office Deduction: Deduct a portion of your mortgage, utilities, and home-related expenses if you manage your investments from a home office.

  • Energy Efficiency Tax Credits: Claim tax credits for making energy-efficient improvements to your properties.

  • Real Estate Professional Status: Deduct losses from real estate activities against other income, reducing overall taxes.

Want to learn more about how to maximize these tax benefits?