Real estate offers some of the most powerful tax deductions available, but many property owners fail to maximize them. From mortgage interest and depreciation to mileage, repairs, home office deductions, and bonus depreciation strategies, understanding these write-offs can significantly reduce taxable income and improve long-term cash flow for landlords and investors.

Real Estate Professional Status (REPS) allows qualifying investors to treat rental losses as non-passive, unlocking the ability to offset W-2 or business income. This guide explains the 750-hour rule, the >50% test, and the importance of material participation and grouping elections. With the return of 100% bonus depreciation, REPS has become one of the most powerful tax strategies in 2026 for high-income earners seeking to reduce their overall tax burden.