- Joined
- 7 April 2006
- Messages
- 420
Hi,
I know this question comes up frequently, but I'm looking to buy a condo to rent out. The main purpose of this is to reduce tax liability - not to make money.
I'm looking to purchase a $300,000 condo where I can rent it out at $1,500 per month. Putting down 20% ($60,000), I would pay about $1450 per month for just the mortgage, of which interest would be about $1200 per month. Taxes would be about $700 per month and maintenance would come out to about $300 per month.
What is tax deductible here? If my total expenses are $2450 per month and I'm only collecting $1500 per month, could I deduct $950 per month from my taxable income (regular day job)? Someone also told me that you can take the purchase price of your property and deduct the depreciation over 25 years?
If I did this, would I still be able to deduct the mortgage interest and property taxes from my primary residence?
Thank you in advance,
-Brian.
I know this question comes up frequently, but I'm looking to buy a condo to rent out. The main purpose of this is to reduce tax liability - not to make money.
I'm looking to purchase a $300,000 condo where I can rent it out at $1,500 per month. Putting down 20% ($60,000), I would pay about $1450 per month for just the mortgage, of which interest would be about $1200 per month. Taxes would be about $700 per month and maintenance would come out to about $300 per month.
What is tax deductible here? If my total expenses are $2450 per month and I'm only collecting $1500 per month, could I deduct $950 per month from my taxable income (regular day job)? Someone also told me that you can take the purchase price of your property and deduct the depreciation over 25 years?
If I did this, would I still be able to deduct the mortgage interest and property taxes from my primary residence?
Thank you in advance,
-Brian.