By Admin on Aug 31, 2008 in Renting & Real Estate
K K asked:
IRS says you can loose up 25K per a year on rental properties. I am looking to create a mortgage to myself, so I have the tax right off from the rental income. Thoughts?
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IRS says you can loose up 25K per a year on rental properties. I am looking to create a mortgage to myself, so I have the tax right off from the rental income. Thoughts?
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just do an equity line if u need some money some say u can loose money on the capital gain factor but then u are thinking about making it an investment so that all depends on u
pinky200626 | Sep 1, 2008 | Reply
Investment properties are an excellent tax shelter. You are able to write off their expenses on a Schedule E thereby reducing your taxable income.
I owrk with quite a few investors who do exactly that.
Feel free to email me.
mazziatplay | Sep 3, 2008 | Reply
Doesn’t make any sense to me. You’d have to pay taxes on the interest you pay yourself on the mortage and on the rental income and the likelihood of it causing an audit are astronomical. If you’re renting it out, property taxes are still a write off whether it’s mortgaged or not. You can also claim the depreciation on a ton of stuff like the structure itself, carpet, newer appliances, etc.
Shane | Sep 5, 2008 | Reply
You can write off mortgage interest only in connection with a mortgage loan, not the entire payment. You can write off repairs and utilities. A mortgage to yourself makes no sense…maybe to a corp that you own…but I digress. The thing about losing money in the eyes of the IRS is that you have to LOSE money…and who wants to do that??
StephanieS | Sep 7, 2008 | Reply