I make too much money...

55 Replies

Originally posted by @Ralphie Hernandez :

So today I called my CPA to let him know that I’m going to be buying rental properties in the near future. I Wanted to get some insight on some of the tax breaks I would be getting for having rental properties, he informs me that because I make too much money in my regular job that I will not qualify for tax breaks on my rentals. So my question is how is this going to affect my bottom line? 

I  was running my numbers and I realized the same thing. I’m in a higher income tax bracket as well 32%+. Zero benefit right now with our 4 properties. 

Between the mortgage interest (front-loaded when leveraged), and the maintenance/turnover expenses, we're coming up well short on some of the units.

Ultimately determined it’s just suspended until we decide to sell. There’s a good chance we’ll sell one or two off this year.

If the wealthiest people in the world can find the tax loopholes and your CPA is stating you make too much to do the same, you might want to search for a new CPA.

There should be no hard feelings between you and your CPA. However, at the end of the day, it's business, and you need to save money when growing a business.

@Ralphie Hernandez

You didn't mention whether your current income is w2 type or other. That makes a tremendous difference.

Another thing, in my opinion CPA's are effective for only a few things, and their attitude/perspective about money can cause you serious financial pain. I would interview a couple of new CPA's who focus on business and tax strategy to gain a better perspective.

@Ralphie Hernandez

I am new also and just found out I am in the same boat. I am sure there is some way around it but I only have 3 properties this year so the cost for a good cpa is probably more than what I will save at this point until I get a couple more properties. Let me know if you end up figuring anything out. Looks like there are a lot of good suggestions.