Year-End Real Estate Tax Moves for Homeowners and Landlords
Year-End Real Estate Tax Moves for Homeowners and Landlords
November 2024
As 2024 winds down, it’s not just holiday lights and turkey dinners on the calendar—it’s tax strategy season. Whether you’re a homeowner, house-hacker, or seasoned landlord, year-end is your final chance to make smart moves that can lower your tax bill and boost your bottom line.
With inflation, interest rate shifts, and rising property values shaping this year’s real estate landscape, these are the most important tax-saving steps to consider before December 31st.
1. Accelerate Deductions Where You Can
Now’s the time to prepay certain expenses that will count for your 2024 tax return:
Property taxes (if you haven’t reached the $10k SALT cap)
Mortgage interest (if making January’s payment early makes sense)
Insurance premiums
Maintenance or repair costs on rental properties
Why it matters: Bringing these expenses into 2024 reduces your taxable income now—especially useful if you expect lower earnings next year.
2. Maximize Depreciation Benefits
Rental property owners can deduct depreciation—a non-cash expense that often results in huge tax savings over time.
Before year-end:
Ensure you've started depreciation on any new property or major renovation
Talk to a CPA about bonus depreciation or cost segregation studies to accelerate deductions
Keep clean records of appliances, roofing, HVAC, and other capital improvements
3. Use a HELOC or Refi for Tax-Deductible Investment
If you’ve tapped your home equity to finance a renovation, rental, or business venture this year, check if the interest on that debt qualifies as a deduction.
HELOC Tip: Interest is deductible only if the funds were used for substantial home improvements—not for personal use like vacations or paying down credit cards.
4. Claim Home Office Deductions (the Right Way)
If you work from home or manage your real estate portfolio from a dedicated space, you may be able to deduct:
A portion of your home’s square footage
Utilities, internet, repairs, and depreciation on that space
Office furniture and supplies
Reminder: The space must be used exclusively and regularly for business purposes. No doubling as a guest room or game room.
5. Take Advantage of the $250K/$500K Exclusion
If you sold your primary residence in 2024, you may qualify to exclude up to $250,000 ($500,000 for married couples) in capital gains—if:
You owned and lived in the home for at least 2 of the last 5 years
It was your primary residence
You haven’t used this exclusion in the past 2 years
Pro tip: If you're close to qualifying, talk to a tax advisor before closing this year—you might benefit by delaying the sale.
6. Offset Gains With Losses (Tax-Loss Harvesting)
If you sold an investment property or second home at a profit this year, you may be able to offset the gain by selling underperforming investments—like stocks or crypto—for a loss.
This “harvesting” strategy can help lower your capital gains exposure and reduce what you owe the IRS.
7. Keep Rental Income and Expense Records Clean
Landlords should double-check that they’ve accurately tracked:
Rent collected
Security deposit returns
Maintenance, utilities, and service invoices
Travel mileage for property management
Contractor 1099s (due in January)
Organized books = fewer missed deductions and less stress come tax time.
Bottom Line
Before the ball drops on New Year’s Eve, there’s still time to make real estate moves that save you thousands on your 2024 tax bill. Whether you own one home or several rentals, take advantage of these final months to maximize deductions, plan ahead, and protect your profit.
And as always—when in doubt, connect with a tax advisor who understands real estate. Smart strategy now can mean a much happier April 15.
