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Even More Reasons To Become A Real Estate Investor
First I want to make it clear that I am not an accountant and I do not play one on TV. Anything I say should be verified with you tax and financial planners.
That being said, after the passage of the latest tax bill, owning Silicon Valley rental property has become an even better investment for Silicon Valley real estate investors.
Here is why I say this:
1. The tax bill restricts property tax deductions to a combination of 10K for both primary and second home property tax and state tax. For many Silicon Valley Real Estate investors this 10K limit is taken up completely just by state income tax.
2. This 10K limit does not apply to Silicon Valley rental properties owned by Silicon Valley Real Estate investors. Property tax is an expense that is subtracted from rental income before you owe any tax.
3. The tax bill restricts interest deductions on new mortgages, those initiated after Dec 15th, 2017, or before Dec 15th 2017 but not closed before April of 2018 to $750,000.
4. This restriction does not apply to Silicon Valley rental properties. If you are buying a Silicon Valley rental property over a million dollars, which many of them are, and want to ... more
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