All Forum Posts by: Rob Ko

Thank you very much for your reply, I really appreciate it. I think I got little confused. I think all that you listed is on Federal level. But again I am not an expert and I probably didn't express myself well.
I was more concerned about state taxes. For instance I live in Hawaii and we have G.E. Tax here. Hawaii doesn't have a sales tax, but it does impose the general excise tax (GET) “at every level of transaction on goods and services… .” The GET is 4%throughout most of Hawaii, and 4.5% on Oahu,but the state allows a business to charge their customers a maximum of 4.712% to help recoup some of their total GET.
So, my question is if I would have to pay that twice, here in Hawaii and somewhere where I will acquire the rental property. 

If you are familiar with this I would greatly appreciate your advice.

thank you


Originally posted by @Greg Scott:

Thank you very much for your time and knowledge. Would you mind pointing a right direction as far as article or other resource where I could find out more about the strategy of not paying income tax? I would greatly appreciate it.

Thank you in advance

Rob


Originally posted by @Greg Scott:

For your analysis, I would just focus on property tax, which is hard to avoid.   You will pay property tax in the state where the property exists.  

Income tax is a different story but something you have more control over in real estate investing.  If you do it right, you can defer income tax effectively forever.  If you buy right, you shouldn't be paying income tax while you own the property.

For instance I have an income property in Hawaii and every month I have to pay GE Tax on whatever griss income it makes. It is 4%. If I would have another property in other state how would that work? 


Thank you very much in advance. Appreciate your time!!!

Originally posted by @Basit Siddiqi:

@Rob Ko

The answer to this question depends on several factors - the general guideline is that you will not be faced with double taxation at the state level. States provide a credit for taxes paid to another state.

However, there are some things to take into consideration - will your rental property generate income or a loss?
Does the state you live in a gross income state(only factors positive income factors) or does it factor both income and losses to come up with AGI.

Originally posted by @Jeff Morelock:

Since the Tampa Bay Market is really hot right now, it is hard to keep even a marginal property on hand. I seldom have to put anything into MLS anymore. Even crappy little $40,000 condos in crappy areas are selling within hours. Ya have to have a quick trigger finger around these parts lol.

There's hundreds of us, some licensed some not. What are you looking to do?