Tax Advantages Of Owning A Vero Beach Rental Home
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The most obvious is the income generated from your rental yields further tax advantages. In addition, there are property depreciation deductions, and deferral of capital gains tax, to think about.

VERO BEACH, Fla. - Floridant -- Per Jillian Arce member of Team Paradise Property Management "Best Vero Beach Property Management Co."

Rental Yields – The income you generate from your Vero Beach rental home obviously will add to your income to be declared on your tax return. If the profit from your rental is part of your annual income, it could help you lower your expenses. These tax savings can turn out to be very favorable for property investors.

Depreciation Deductions – Your natural property wear and tear over time is called property depreciation. Depreciation is a valuable tax deduction that permits you to recover the outlay of buying your rental home. It is possible that not only would depreciation balance the positive returns of your Vero Beach rental home but it may ultimately exceed them. Depreciation assists property investors by creating additional wealth that can cushion them from any rise in their taxable income.

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Capital Gains Tax Deferral – Rental income investors can get a tax benefit from deferring capital gains tax with a 1031 Exchange. But when you decide to sell your Vero Beach rental home, you will need to pay capital gains tax on the sale, depending on the length of time you've owned the rental property, the percentage of capital gains tax that you pay can vary. With a 1031 exchange, you can reinvest in a new investment rather than being taxed and lose part of your benefits from the cost shield and devaluation. Doing a 1031 exchange can reduce your beefs against capital gains tax. However, the swap is possible if the two properties belong to the same property group.

Given these tax advantages of owning a Vero Beach rental home, it's important for you to fully understand the tax and appreciation advantages of a Vero Beach rental property and be sure to have a clear long-term investment strategy in mind before you go ahead and take the plunge.

For more information about renting a home or selling your home, please contact Jillian Arce and her team at

Jillian Arce

Source: Coldwell Banker Paradise
Filed Under: Real Estate

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