As a homeowner, you can deduct your mortgage interest payments and real estate taxes each year. You can also deduct all the points you paid to purchase your home, as it’s considered pre-paid interest, in the year you purchased your home. Remember if you buy a home earlier in the year, you’ll have more months of mortgage interest to deduct come tax time.

As an owner of a rental property, you also benefit from tax deductions, including:

• Interest on your mortgage
• Ordinary and necessary repairs
• Local and long distance travel expenses related to upkeep or tenant relations to and from your rental (but make sure you document them well)
• The cost of your real estate purchase through depreciation of the property over several years
• All the fees you pay to professionals – a lawyer, property manager, CPA, real estate investment advisor, and a contractor to do repairs