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Jumby.
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December 19, 2007 at 5:10 PM #121186December 19, 2007 at 6:00 PM #120965
(former)FormerSanDiegan
ParticipantYou CAN deduct interest for tax purposes on investment property.
As I stated above the mortgage interest is deducted from the gross rent received. (As are the other expenses mentioned). surveyor accounted for these in his calculation.
There is no additional “tax savings” for which to account by taking a mortgage interest deduction. He already accounted for that by subtracting it as an expense from gross rents.
December 19, 2007 at 6:00 PM #121102ParticipantYou CAN deduct interest for tax purposes on investment property.
As I stated above the mortgage interest is deducted from the gross rent received. (As are the other expenses mentioned). surveyor accounted for these in his calculation.
There is no additional “tax savings” for which to account by taking a mortgage interest deduction. He already accounted for that by subtracting it as an expense from gross rents.
December 19, 2007 at 6:00 PM #121135ParticipantYou CAN deduct interest for tax purposes on investment property.
As I stated above the mortgage interest is deducted from the gross rent received. (As are the other expenses mentioned). surveyor accounted for these in his calculation.
There is no additional “tax savings” for which to account by taking a mortgage interest deduction. He already accounted for that by subtracting it as an expense from gross rents.
December 19, 2007 at 6:00 PM #121183ParticipantYou CAN deduct interest for tax purposes on investment property.
As I stated above the mortgage interest is deducted from the gross rent received. (As are the other expenses mentioned). surveyor accounted for these in his calculation.
There is no additional “tax savings” for which to account by taking a mortgage interest deduction. He already accounted for that by subtracting it as an expense from gross rents.
December 19, 2007 at 6:00 PM #121206ParticipantYou CAN deduct interest for tax purposes on investment property.
As I stated above the mortgage interest is deducted from the gross rent received. (As are the other expenses mentioned). surveyor accounted for these in his calculation.
There is no additional “tax savings” for which to account by taking a mortgage interest deduction. He already accounted for that by subtracting it as an expense from gross rents.
December 19, 2007 at 6:39 PM #120976Jumby
ParticipantI was referring to data he posted in a different thread. He posted his numbers for Return on Equity (ROE).
Return on Equity = (the way he calculated it) Cash Flow + Appreciation + Loan Reduction + Tax Savings divided by down payment.
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What I originally said (and you first commented on) is he didn’t factor in the interest deduction when figuring his tax savings. He confirmed that by saying he purposely overcompensated by adding in too much depreciation (he didn’t subtract the land from the basis).Make sense now? I got a feeling we are saying the same thing.
December 19, 2007 at 6:39 PM #121112ParticipantI was referring to data he posted in a different thread. He posted his numbers for Return on Equity (ROE).
Return on Equity = (the way he calculated it) Cash Flow + Appreciation + Loan Reduction + Tax Savings divided by down payment.
*************
What I originally said (and you first commented on) is he didn’t factor in the interest deduction when figuring his tax savings. He confirmed that by saying he purposely overcompensated by adding in too much depreciation (he didn’t subtract the land from the basis).Make sense now? I got a feeling we are saying the same thing.
December 19, 2007 at 6:39 PM #121145ParticipantI was referring to data he posted in a different thread. He posted his numbers for Return on Equity (ROE).
Return on Equity = (the way he calculated it) Cash Flow + Appreciation + Loan Reduction + Tax Savings divided by down payment.
*************
What I originally said (and you first commented on) is he didn’t factor in the interest deduction when figuring his tax savings. He confirmed that by saying he purposely overcompensated by adding in too much depreciation (he didn’t subtract the land from the basis).Make sense now? I got a feeling we are saying the same thing.
December 19, 2007 at 6:39 PM #121193ParticipantI was referring to data he posted in a different thread. He posted his numbers for Return on Equity (ROE).
Return on Equity = (the way he calculated it) Cash Flow + Appreciation + Loan Reduction + Tax Savings divided by down payment.
*************
What I originally said (and you first commented on) is he didn’t factor in the interest deduction when figuring his tax savings. He confirmed that by saying he purposely overcompensated by adding in too much depreciation (he didn’t subtract the land from the basis).Make sense now? I got a feeling we are saying the same thing.
December 19, 2007 at 6:39 PM #121216ParticipantI was referring to data he posted in a different thread. He posted his numbers for Return on Equity (ROE).
Return on Equity = (the way he calculated it) Cash Flow + Appreciation + Loan Reduction + Tax Savings divided by down payment.
*************
What I originally said (and you first commented on) is he didn’t factor in the interest deduction when figuring his tax savings. He confirmed that by saying he purposely overcompensated by adding in too much depreciation (he didn’t subtract the land from the basis).Make sense now? I got a feeling we are saying the same thing.
December 19, 2007 at 6:46 PM #121006surveyor
Participant[img_assist|nid=5882|title=Huntsville Property|desc=|link=node|align=left|width=466|height=352]
No, FSD is right, I thought you were referring to another interest deduction, not mortgage interest deduction. The mortgage interest deduction is taken away from the cash flow.
Some pictures…
December 19, 2007 at 6:46 PM #121142Participant[img_assist|nid=5882|title=Huntsville Property|desc=|link=node|align=left|width=466|height=352]
No, FSD is right, I thought you were referring to another interest deduction, not mortgage interest deduction. The mortgage interest deduction is taken away from the cash flow.
Some pictures…
December 19, 2007 at 6:46 PM #121174Participant[img_assist|nid=5882|title=Huntsville Property|desc=|link=node|align=left|width=466|height=352]
No, FSD is right, I thought you were referring to another interest deduction, not mortgage interest deduction. The mortgage interest deduction is taken away from the cash flow.
Some pictures…
December 19, 2007 at 6:46 PM #121223Participant[img_assist|nid=5882|title=Huntsville Property|desc=|link=node|align=left|width=466|height=352]
No, FSD is right, I thought you were referring to another interest deduction, not mortgage interest deduction. The mortgage interest deduction is taken away from the cash flow.
Some pictures…
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