Ask HN: Is buying a house in 2017 a good idea? • Hacker News Board

Re: Ask HN: Is buying a house in 2017 a good idea?

#41

Post by [deleted] » Wed, Jan 04, 2017, 11:10 PM UTC

gigatexal wrote: post #40

bogomipz wrote: post #36

Earlier quoted context omitted.

Oh sorry that sentence was meant to be "you can not write off 100% of the interest that is an income property." For instance if you have bought a property as a pure investment property and the total mortgage + interest is being covered by the tenants monthly rent. You can not then write off that interest at 100% since you are not actually incurring that interest payment yourself correct?

Incorrect. Interest expense is a line item that is deducted from the company's tax burden. It's the same with a rental regardless if everything is being covered.

[deleted]

Re: Ask HN: Is buying a house in 2017 a good idea?

#42

Post by [deleted] » Wed, Jan 04, 2017, 11:11 PM UTC

gigatexal wrote: post #40

bogomipz wrote: post #36

Earlier quoted context omitted.

Oh sorry that sentence was meant to be "you can not write off 100% of the interest that is an income property." For instance if you have bought a property as a pure investment property and the total mortgage + interest is being covered by the tenants monthly rent. You can not then write off that interest at 100% since you are not actually incurring that interest payment yourself correct?

Incorrect. Interest expense is a line item that is deducted from the company's tax burden. It's the same with a rental regardless if everything is being covered.

[deleted]

Re: Ask HN: Is buying a house in 2017 a good idea?

#43

Post by bogomipz » Wed, Jan 04, 2017, 11:12 PM UTC

gigatexal wrote: post #40

bogomipz wrote: post #36

Earlier quoted context omitted.

Oh sorry that sentence was meant to be "you can not write off 100% of the interest that is an income property." For instance if you have bought a property as a pure investment property and the total mortgage + interest is being covered by the tenants monthly rent. You can not then write off that interest at 100% since you are not actually incurring that interest payment yourself correct?

Incorrect. Interest expense is a line item that is deducted from the company's tax burden. It's the same with a rental regardless if everything is being covered.

>"Incorrect. Interest expense is a line item that is deducted from the company's tax burden."

We weren't discussing a company though, we were discussing one's personal income tax filing.

Re: Ask HN: Is buying a house in 2017 a good idea?

#44

Post by quesera » Sat, Jan 07, 2017, 6:19 AM UTC

bogomipz wrote: post #43

gigatexal wrote: post #40

Earlier quoted context omitted.

Incorrect. Interest expense is a line item that is deducted from the company's tax burden. It's the same with a rental regardless if everything is being covered.

>"Incorrect. Interest expense is a line item that is deducted from the company's tax burden." We weren't discussing a company though, we were discussing one's personal income tax filing.

100% of mortgage interest on personally-owned rental properties is deductible.

Mortgage interest is itemized just like any other cost incurred, e.g. maintenance, utilities, advertising, property taxes, etc.

The net profit/loss on the Schedule is then applied to your personal return. You might be limited in the size of loss you can apply, but that's an unrelated calculation.