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Discussion Starter #1
Do you guys with big houses just buy an additional property/s to rent out to cover all the property taxes?

How much would i have to put into additional rental properties JUST to cover all my propery taxes with a nice home? what percentage of the homes value or, maybe simpler, the split of the total spend?
 

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Guess it would depend a lot on income tax situation as well, as the rental income would be taxed at some rate (personal, corporate, spouse, child), would it not? Property tax on the rental should be deductible against income. Mortgage interest likely as well. But those laws, as well as rental legislation, must vary widely by state and even city in the US. Being involved in residential rentals in a big way at work, it's not something to go into without a lot of understanding!

Hmm, asking for free foreign tax advice from a bunch of strangers on an internet car discussion forum. You realize that you will get what you pay for, right? ;)
 

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Property taxes do indeed vary by city and county in the states. Some states have very reasonable property taxes, others not so much. Income tax, sales tax, property tax in the USA can vary quite a bit.
 

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Discussion Starter #6
Sure, of course there is tax on the rent collected and the rates vary state by state, I'm just asking if additional rental properties are the goto strategy to cover huge property tax on nice homes, I know the details and final figures will vary according to situation and location, price range etc, I'm just asking what broad strategy is most commonly used.

4 Canada..... I imagined this board would be populated with a number of Americans with nice homes and property tax mitigation in place ;)
 
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