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Mortgage Question

i hadnt planned on it because i want to deduct the mortgage interest. will i be able to do that?
 
Baconwfu said:
8% return might be a bit optimistic...but I don't really k ow much anymore
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pretty sure 8% is the dividend free yield of s&p over pretty much any 30 year period, and it's closer to 10% if you reinvest dividends. could be misremembering though.
 
deacphan said:
i hadnt planned on it because i want to deduct the mortgage interest. will i be able to do that?
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If it's a rental property then I think the mortgage interest just goes against your income on the property anyway. But I'm not tax guy, I hate taxes.

Also... You gotta hook up the boards with discounted rental rates!
 
deacphan said:
i hadnt planned on it because i want to deduct the mortgage interest. will i be able to do that?
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If you are the sole member of the LLC it is a disregarded entity and basically doesn't exist for tax purposes. If you could deduct the interest owning it yourself, you can deduct the interest if your single member LLC owns it.
 
Wakelaw2006 said:
If you are the sole member of the LLC it is a disregarded entity and basically doesn't exist for tax purposes. If you could deduct the interest owning it yourself, you can deduct the interest if your single member LLC owns it.
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And when one of your renters gets blackout and stuffs their hand in the disposal they can't take everything else that you own.
 
buckets said:
If it's a rental property then I think the mortgage interest just goes against your income on the property anyway. But I'm not tax guy, I hate taxes.

Also... You gotta hook up the boards with discounted rental rates!
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It depends on how much they use it - I think it's something like you have to use it for the greater of 14 days or 10% of the number days it is rented for it to be deductible as mortgage interest on a second home (Schedule A deduction). If you don't use it enough, then it is a rental property and has to be reported as such (but I'm not really sure what goes into that - I would assume that interest would be deductible as a rental expense, but we are getting way out of my realm).
 
The moral of the story is that taxes suck ass
 
Wakelaw2006 said:
It depends on how much they use it - I think it's something like you have to use it for the greater of 14 days or 10% of the number days it is rented for it to be deductible as mortgage interest on a second home (Schedule A deduction). If you don't use it enough, then it is a rental property and has to be reported as such (but I'm not really sure what goes into that - I would assume that interest would be deductible as a rental expense, but we are getting way out of my realm).
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yup. that's it. fyi you can use that for house boats as well.
 
buckets said:
The moral of the story is that taxes suck ass
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the moral of the story is if you have money you can figure out ways to pay less taxes (i.e. vacation homes and house boats).
 
O great thanks taxes for allowing me the opportunity to go well out of my way to slightly avoid your full wrath
 
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