Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime
Level up your investing with Pro
Explore exclusive tools and resources to start, grow, or optimize your portfolio.
10+ investment analysis calculators
$1,000+/yr savings on landlord software
Lawyer-reviewed lease forms (annual only)
Unlimited access to the Forums

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Followed Discussions Followed Categories Followed People Followed Locations
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 1 year ago on . Most recent reply presented by

User Stats

19
Posts
2
Votes
Marek J.
  • Chicago, IL
2
Votes |
19
Posts

After tax return question

Marek J.
  • Chicago, IL
Posted

High w2 earner and was wondering what would be savings i make on tax regarding rental income after all tax write off?

for example I’d need to make 18 at work to equal 9k rental income.

So I calculated that with real estate I’m saving 35% fed 7.75% IL tax 7.25 Social security tax and 0.9% niit tax.

50.6% savings ? So 

I have to make 50.6% more at work to equal what I’d keep with real estate. Just checking my math.

This is obviously after all expense , depreciation, cost set, property tax write offs, 20% etc.


my question is are my assumptions correct? 

Most Popular Reply

User Stats

98
Posts
82
Votes
Jason Watson
  • CPA
  • Colorado Springs, CO
82
Votes |
98
Posts
Jason Watson
  • CPA
  • Colorado Springs, CO
Replied
Ooof. Sorry, and perhaps it is just me, but I cannot follow your math and I don't fully understand your question. Sidebar, you usually don't have a Social Security savings with typical rental losses.
business profile image
WCG CPAs & Advisors
4.6 stars
86 Reviews

Loading replies...