Maximizing Your Real Estate Investment

chimeinconsults2
Aug 11
3 min read

At Chime In Consultancy, we know that investing in real estate is one of the smartest ways to build wealth — but navigating the tax rules can be tricky.

The recent One Big Beautiful Bill (OBBB) tax reform signed in 2025, there are some exciting updates that could help you keep more of your hard-earned money.

If you’re a homeowner or rental property investor, here’s what you need to know to take full advantage of the tax benefits in real estate.

1. Tax Deductions You Can Claim on Your Rental Property

Owning rental property lets you deduct many expenses on your tax return, lowering your taxable income. Common deductions include:

Mortgage interest: You can deduct the interest you pay on your rental property loan.
Property taxes: Deduct local and state property taxes.
Repairs and maintenance: Fixing broken appliances or patching a roof can be deducted in the year you pay for them.
Operating expenses: This includes insurance, utilities, property management fees, and advertising your rental.
Travel expenses: If you visit your rental to manage or maintain it, travel costs may also be deductible.

2. Depreciation: Your Hidden Tax Savings

Depreciation allows you to deduct the cost of your property over time — even though you don’t physically lose money.

The IRS lets you depreciate residential rental property over 27.5 years.
You can also deduct the cost of improvements (not repairs) spread out over several years.
Important update: Thanks to the OBBB, you can now take advantage of 100% bonus depreciation on qualifying property placed into service after January 2025. This means you might deduct the entire cost of things like appliances or improvements right away instead of waiting years!
Keep in mind that land is NOT depreciable, only buildings and improvements.

3. Reporting Rental Income: What Counts?

You must report all income from your rental properties, which includes:

Rent payments from tenants.
Advance rents or security deposits kept as damages.
Fees for services like cleaning or maintenance charged to tenants.

Rental income is typically reported on Schedule E of your tax return.

4. What’s New with the One Big Beautiful Bill?

The OBBB brought some great changes that benefit real estate investors:

Permanent 100% Bonus Depreciation:You can immediately write off the full cost of many qualifying property improvements — no more waiting decades!
Expanded SALT Deduction:The cap on state and local tax deductions increased to $40,000 (up from $10,000), which helps if you pay high property or income taxes.
Increased Qualified Business Income Deduction:The QBI deduction for rental real estate professionals rose to 23%, reducing taxable income further.

5. Tips for Real Estate Investors

Keep detailed records: Receipts and documents make tax time easier and protect you if audited.
Separate your personal and rental finances: This helps track deductions and income accurately.
Work with a tax professional: Real estate tax laws can be complex — having expert advice helps you stay compliant and maximize savings.
Plan your improvements wisely: Use the bonus depreciation rule to your advantage by timing your purchases and upgrades.

Ready to Save More on Your Real Estate Investments?

At Chime In Consultancy, we help investors like you understand and leverage tax laws to grow your wealth smarter. Whether you’re just starting out or looking to optimize an existing rental portfolio, we’re here to guide you every step of the way.

Contact us today to learn how to maximize your deductions, navigate depreciation, and confidently report your rental income under the new tax laws!