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Updated almost 5 years ago,

User Stats

21
Posts
2
Votes
Joseph Niedermeyer
  • Rental Property Investor
  • Jacksonville, NC
2
Votes |
21
Posts

Newbie question on personal income and rental income deductions

Joseph Niedermeyer
  • Rental Property Investor
  • Jacksonville, NC
Posted

Long time lover of real estate but relative newbie to investing. It’s tax Season and in doing our 2019 taxes I asked about strategies for reducing taxes. I made just shy of $100k last year and want to start investing in buy/hold rentals this year. My day job is commissioned sales and I could realistically see $125k - $150k in 2020. I asked how having rentals would affect my tax situation. Her advice was to keep my overall total income under $150k or I would have to defer deductions for rental expenses or even potentially loose them all together. I know the tax laws have changed a lot in recent years, but I thought deductions on expenses and depreciation and other “costs” were one of the huge benefits of investing in real estate? Or am I misunderstanding what she’s telling me.

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