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Old 11-15-2013, 06:14 AM
Status: "I am in preparation mode!" (set 9 days ago)
 
5,515 posts, read 5,505,813 times
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The property is in New York. I am still having a little trouble understanding. I want the income reported on my taxes to be as low as possible to reduce my tax liability. On the other side, I want as much of that income to be used to offset the mortgage to qualify for a new mortgage. Do you know of a reference that I can read? I think my understanding will increase once my taxes are done. Thanks for your help.
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Old 11-15-2013, 09:03 AM
 
Location: Southern California
4,350 posts, read 4,939,435 times
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Originally Posted by goodlife36 View Post
The property is in New York. I am still having a little trouble understanding. I want the income reported on my taxes to be as low as possible to reduce my tax liability. On the other side, I want as much of that income to be used to offset the mortgage to qualify for a new mortgage. Do you know of a reference that I can read? I think my understanding will increase once my taxes are done. Thanks for your help.
It is one way or the other , you either make more and pay more in taxes and can borrow more , or pay less in taxes and can borrow less.

The only way see around it , is to make capital improvement where you get to depreciate them, but then it hurts your cash flow a lot in the year that you do them.

Lets say you have a $100 a month cell phone bill $1200 a year and it is something you'd have regardless of your rental. If you decide to use the phone as a business expense, you might save on your taxes but now your property is making $100 less per month. You'll have to decide this on you own before you do you taxes.
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Old 11-15-2013, 01:29 PM
Status: "I am in preparation mode!" (set 9 days ago)
 
5,515 posts, read 5,505,813 times
Reputation: 4211
Quote:
Originally Posted by thelopez2 View Post
It is one way or the other , you either make more and pay more in taxes and can borrow more , or pay less in taxes and can borrow less.

The only way see around it , is to make capital improvement where you get to depreciate them, but then it hurts your cash flow a lot in the year that you do them.

Lets say you have a $100 a month cell phone bill $1200 a year and it is something you'd have regardless of your rental. If you decide to use the phone as a business expense, you might save on your taxes but now your property is making $100 less per month. You'll have to decide this on you own before you do you taxes.
I appreciate your advice. I have a few years to figure it out. Thank you.
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