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I pay a ton of property taxes. About 1500 a month but its all deductible against rental income except for my primary dwelling. And Ill pay a lot in taxes when
by RocketOne 4y ago
I pay a ton of property taxes. About 1500 a month but its all deductible against rental income except for my primary dwelling.
And Ill pay a lot in taxes when I sell the rental houses. My primary dwelling is tax exempt for capital gains but the rest are taxed at 50% of the gain.
Eg. If I bought for 300,000 and sold for 400,000 then 50% of the 100,000 is taxable. So if I made 100,000 that year then my new income is 150,000 and that will be taxed at about 36% so Id pay 54,000 in taxes that year instead of 36,000.