Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 4 years ago, 12/20/2020

User Stats

14
Posts
4
Votes
Joshua Rowland
  • Rental Property Investor
  • Nashville, TN
4
Votes |
14
Posts

I have to pay 20k to the IRS to play the RealEstate game

Joshua Rowland
  • Rental Property Investor
  • Nashville, TN
Posted

I’m 21 and self-employed. The past 2 years I haven’t had my business on paper, so to do that I have to file my taxes. Normally I wouldn’t hesitate, but I realized for me to qualify for a good mortgage I have to take the loss in write-offs for 2019 and 2020.

2019: I made 40k (owe the IRS 9k)

2020: I made 60k (owe the IRS 12k)

2021 I’m projected to make 80k.

My question is, is it worth it to pay up the taxes NOW and buy a property by the end of 2021 (that’s when I should have around 40k for a down payment), or should I wait a year to see if the market is potentially going to drop. If I wait a year that means I’ll most likely be able to qualify for a bigger mortgage, but it means I won’t be able to buy a property until 2022. I hear that the sooner you get into real estate the better.

Also, what are your thought on buying a home as a 21 year old to live in, NOT to rent out. I’m in Tennessee, so you can get a big house for a bang for your buck. It’s comforting knowing that I would own a home.

Loading replies...