View in: Desktop
Copyright @2019 TigerDroppings.com. All rights reserved.
- 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
- 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
Posted by
Message
Rental propertiesPosted by BHTiger
on 12/6/18 at 6:17 am



What are the true tax advantages to owning rental property?
Write off:
1. Interest
2. Property tax
3. HOA fees
What else?
Looking at a property that would clear clear $225 per month (1250 cost with mortgage, escrow, HOA fees and property manager).
Write off:
1. Interest
2. Property tax
3. HOA fees
What else?
Looking at a property that would clear clear $225 per month (1250 cost with mortgage, escrow, HOA fees and property manager).
re: Rental propertiesPosted by geauxnc0308
on 12/6/18 at 7:07 am to BHTiger


Depreciation. Expenses like fertilizer, shrubs, light bulbs, etc. It’s amazing how much stuff my properties need...
Op you know what write off means right? It’s a business expense. I say this because I hear ignorant idiots say things like ‘oh they just right it off’ like it’s free, shite isn’t free. You still pay for them, it’s just before taxes because it’s an expense.
You have depreciation and you have an expense. You can depreciate major items and the purchase price of the property minus the land value, then small things are an expense.
You have depreciation and you have an expense. You can depreciate major items and the purchase price of the property minus the land value, then small things are an expense.
re: Rental propertiesPosted by slinger1317
on 12/6/18 at 7:34 am to BHTiger

Depreciation
Buying shite for "repairs and maintenance" on your "rental properties" wink wink
Buying shite for "repairs and maintenance" on your "rental properties" wink wink
re: Rental propertiesPosted by Fat Bastard
on 12/7/18 at 10:08 pm to BHTiger

quote:
Write off:
1. Interest
2. Property tax
3. HOA fees
insurance
maintenance
property management
depreciation
Depreciation can be important. I'm not talking about true expenses here, that does cost real money after all. But depreciation for tax purposes assumes the property constantly loses value, which may not really be the case.
Basically you're doing an arbitrage play between what the IRS thinks is a useful life vs. the true useful life. If you're referring to residential real estate it'll take awhile (the IRS says you depreciate over 27.5 years) but the property may well wind up gaining value in reality.
Another one is collectible vehicles. Rent one out for display purposes at fairs and such, but don't drive it. You get to deduct the cost over five years even though it isn't being "used". When you sell you pay capital gains tax on the depreciated basis but that's still much less than tax on ordinary income, which is what you deducted.
Basically you're doing an arbitrage play between what the IRS thinks is a useful life vs. the true useful life. If you're referring to residential real estate it'll take awhile (the IRS says you depreciate over 27.5 years) but the property may well wind up gaining value in reality.
Another one is collectible vehicles. Rent one out for display purposes at fairs and such, but don't drive it. You get to deduct the cost over five years even though it isn't being "used". When you sell you pay capital gains tax on the depreciated basis but that's still much less than tax on ordinary income, which is what you deducted.
re: Rental propertiesPosted by Fat Bastard
on 12/8/18 at 12:30 pm to ItzMe1972

1. Equity Capture
If you bought those houses correctly, you should have captured equity in each house.
2. Market Appreciation
3. Cashflow
4. Principle Paydown
If you bought those houses correctly, you should have captured equity in each house.
2. Market Appreciation
3. Cashflow
4. Principle Paydown
re: Rental propertiesPosted by Fat Bastard
on 12/11/18 at 10:37 am to Sev09

yep roll that shite into a 1031. couldn't agree more. it also saves you the depreciation recapture you'd pay if you are a rental owner.
Popular
Back to top
