Real property ownership may offer significant tax advantages.

A key tax advantage of owning income-producing real property is depreciation, which allows investors to deduct a portion of the property’s cost basis (excluding land) over its useful life for tax purposes. This non-cash expense can shelter rental income and reduce taxable income. By contrast, insurance expenses and transfer taxes are ordinary expenses/costs (not advantages), and taxable gains are a potential liability upon disposition, not a benefit.