Commercial Mortgage Broker · San Diego, CA · Member since 2009 · 70 posts · 69 votes
7y
Most analyses I see consider property tax and other local taxes in their calculation of Net Operating Income.
Regarding income tax, most properties are organized into entities that pass taxes through to the partners, each with their own tax situations and rates. As such, it is hard to include tax in your analysis since the tax amount is specific to the individual investor.
Rental Property Investor · New York City · Member since 2014 · 208 posts · 271 votes
7y
@Yonah Weiss You are absolutely correct. Any time I can postpone or avoid taxes altogether, I feel sheltered, LOL.
I was absolutely using it loosely, and I should be more careful. I just get so excited because real estate is so wonderful....I used to pay capital gains tax on money that I never even saw, and now I see the money but don't have to pay the taxes! Whatever you call it, real estate is super tax-friendly, and that's a big reason why I love it!