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My homestead deduction is a few hundred dollars a year while I pay thousands on property taxes every month. Rental properties are still eligible for all kinds o
by gregwebs 5y ago
My homestead deduction is a few hundred dollars a year while I pay thousands on property taxes every month. Rental properties are still eligible for all kinds of tax write-offs. I think the bigger issue is that the government is there to support the mortgage of those buying multiple properties. The low mortgage rate relative to high inflation rate is the underlying financial that makes the housing market a very attractive investment right now. Taking away government subsidies for low mortgage rates for investors would radically alter the market.
- abofh 5y agoThis, when I lived in my apartment, I'd save 300$/year on 10k of property taxes. When I rented it, I got a 30k/yr deduction for depreciation - between that and rent, it basically pays for itself right out of the gate as long as I have the income to use the deductions.
- wing-_-nuts 5y agoDon't you have to pay back that depreciation when you sell unless you enter some kind of complicated 1030 agreement?
- _rtld_global_ro 5y agoYou can use 1031 exchange to avoid that.