Which of the following is a benefit of owning investment property?

Owning investment property often comes with various financial advantages, and one significant benefit is the availability of tax deductions. When property owners invest in real estate, they can often write off costs such as mortgage interest, property taxes, depreciation, and certain operating expenses related to the rental property. These deductions can substantially decrease taxable income, providing significant tax savings and enhancing overall cash flow from the investment.

While guaranteed income, instant equity, and high liquidity may sound appealing, they are not reliable benefits of owning investment property. Income from rental properties can fluctuate, as it depends on market demand and occupancy rates. Instant equity is not typically achieved without a substantial down payment or value appreciation. Liquidity, or the ability to quickly convert an asset to cash, is generally low in real estate compared to other investments due to the time and costs involved in selling properties. Therefore, tax deductions present a consistent and advantageous reason to consider investing in real estate.