Homeowners, Renters and Taxes
There's a lot more to being a landlord than cashing a rent check. Renae Merle's report in the Real Estate section this weekend lays out some of the tax breaks that can make the investment work. Deductions available to landlords include mortgage interest, property taxes, insurance and depreciation--an on-paper-only expense that reflects the diminishing value of a building as it deteriorates over time. And actively involved landlords who don't farm all the work out to someone else can deduct as much as $25,000 of losses against their non-rental income.
Homeowners, of course, have their own well-known tax breaks. Mortgage interest and property taxes are deductible. And, after selling their main home, married couples can reap as much as $500,000 in capital gain without owing a penny in tax. (The limit is $250,000 for singles.)
Is the system stacked too much in favor of homeowners? Landlords? Do renters get a fair shake? What do you think?
Posted by: michellefisherm | February 28, 2009 4:18 PM | Report abuse
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