- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Homebuying...fresh out of college
Posted on 9/16/09 at 2:03 pm to Cold Cous Cous
Posted on 9/16/09 at 2:03 pm to Cold Cous Cous
quote:
but Zero in state income taxes
quote:
This is true whether he rents or buys.
Not true. Don't fall into this illusion. Renters pay property tax (indirectly through their rent), it just isn't direct nor itemized like it is if you own. In addition, since it isn't itemized you don't get to deduct this 'indirect' tax on your federal income tax the way you do if you directly paid it if you owned.
The property owner directly pays the tax, and passes that expense onto their renters.
1
Posted on 9/16/09 at 2:10 pm to MikeBRLA
Certainly. But the tax is *built in* to the rent, whereas if you have a mortgage you have to calculate it and add it in separately. I think too many people neglect to do that. Not a big deal in LA maybe, where the amount is much less, but could be relevant in TX.
This is true. But if you're considering this, run the numbers through the IRS tax calculator to see how much it's actually going to save you.
And as to my actual point, it is absolutely true that whether you rent or buy will have absolutely zero effect on your state income tax rates.
quote:
In addition, since it isn't itemized you don't get to deduct this 'indirect' tax on your federal income tax the way you do if you directly paid it if you owned.
This is true. But if you're considering this, run the numbers through the IRS tax calculator to see how much it's actually going to save you.
And as to my actual point, it is absolutely true that whether you rent or buy will have absolutely zero effect on your state income tax rates.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News