NYS / Federal Income Tax

Rensselaer, NY · Member since 2016 · 27 posts · 6 votes

Hello Biggerpockets! I am currently looking into purchasing a 6 unit multifamily in upstate, NY and I just wanted to see how the taxation works if anyone could help me out and let me know what the percentages are? Thank you in advance.

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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
6y
Originally posted by @Darshan Patel:
Hello Biggerpockets! I am currently looking into purchasing a 6 unit multifamily in upstate, NY and I just wanted to see how the taxation works if anyone could help me out and let me know what the percentages are? Thank you in advance.

Your taxation depends on if you will have taxable income or loss. We don't know that info.

If you have taxable income, then your taxation depends on your marginal rate. we don't know that info.
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Rich Ramjatan
Contractor · Bronx, NY · Member since 2020 · 27 posts · 15 votes
6y
@Darshan Patel
Which area are you looking at?
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Darshan Patel
OP
Rensselaer, NY · Member since 2016 · 27 posts · 6 votes
6y
Originally posted by @Rich Ramjatan:
@Darshan Patel
Which area are you looking at?

Albany, NY

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Darshan Patel
OP
Rensselaer, NY · Member since 2016 · 27 posts · 6 votes
6y
Originally posted by @Ashish Acharya:
Originally posted by @Darshan Patel:
Hello Biggerpockets! I am currently looking into purchasing a 6 unit multifamily in upstate, NY and I just wanted to see how the taxation works if anyone could help me out and let me know what the percentages are? Thank you in advance.

Your taxation depends on if you will have taxable income or loss. We don't know that info.

If you have taxable income, then your taxation depends on your marginal rate. we don't know that info.

From the numbers I ran, I will have a taxable income. The total income of this property is 60-70K per year if that helps. Thank you!

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Basit SiddiqiBusiness Member
Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
6y
@Darshan Patel

It is really hard to say how adding a rental property will impact your taxes. The one who would be best to answer this would be your accountant.

When you factored in positive income from the rental - did you factor in depreciation which is a non-cash tax expense that the IRS gives you?
If yes, maybe the property is a candidate for a cost segregation analysis - This doesn't increase your deductions, it just allows you to bring forward the depreciation to the earlier years. This would potentially allow you to go from positive taxable rental income to negative taxable rental income.
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