A tax deduction lowers your taxable income by taking your gross income and subtracting qualified expenses.

Subtracted the $350k purchase price giving her $1.1mil minus $350k for a subtotal of $750k.

JADU are value subtract as they typically reduce the value of the RE and often best option at selling is to remove the JADU.good luck

From there, we subtract out our expected profit, scope of work from the contractor, closing costs on both the buy and sell side of the transaction including realtor commissions, any interest carrying costs, and a "reserve" for unexpected contingencies that might pop up.

Give us a purchase and selling value before subtracting 10% in selling costs.

So always looking at the comps undergirding the estimate and add or subtract accordingly.

You have to subtract the estimated utilities for the property out of that to determine what is left for rent. 

For example - an investor may look at a property and think “I have $80k in equity sitting in this home” because they take the appraised value and subtract the current mortgage balance.

There is also cost of sale(commission, last year improvement) you can subtract from 55K so you will pay say 35K which is a lot less FED Tax wise.25% tax bracket x 35K= .....

Given that we're expecting to build a 2000 square foot house, this puts us at about $72 per square foot to build (if you subtract out the costs to knock down the existing structure).