I will start out by saying that I am not a tax professional, only an American who is exhausted by the ever increasing tax burdens and trying to find solutions. Please consult your tax advisor for your particular tax situation.
With the increase in distressed properties, some great single family homes have come on the market at very affordable prices. I have been purchasing homes for myself and helping clients find good rental properties. For anyone willing to become a landlord - and let me tell you, I don't care what the IRS says, it's not a passive activity - the long term financial rewards can be worth it.
As of 2009, according to turbo tax help topics, if your Adjusted Gross Income is less than $100,000 per year, the tax deductions of interest payments and expenses (up to $25,000)available and the fact that someone else is paying down the mortgage combine for a winning formula. Then it gets better - you can deduct depreciation on the property while it is hopefully going up in value. Due diligence for both the property and tenants is most important for a successfull investment.
See this article from turbo tax for more specific information regarding deductions and limitations http://turbotax.intuit.com/tax-tools/tax-tips/investments-and-rental-property/5568.html
Comments(1)