Is it worth tax planning before acquiring rentals?
Is it worth talking to someone to start the tax planning convos if this is my current situation?
1. I do not have rental property yet but intend to buy in 2025. Partner and I are planning to finance it together.
2. My partner and I are not married but we own a primary residence together. We split mortgage and are both on the loan and title.
As of now, I can see tax planning being beneficial to handle 2 people filing as single because we have to figure out how deductions from the mortgage will work. It'll only be more complicated when we acquire additional property.
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I'm a financial planner by profession so you'd think the default answer is, "heck yeah, always hire a planner!"
But in reality, for younger people with moderate income, I actually see less benefit to financial planning.
The one aspect I'd say where planning can really provide benefit however is with tax planning.
If you're pretty smart with this stuff, I think can definitely make sense for you two to talk with a tax planner. The intricacies tax planning with a rental are worth hiring a professional, even if you just do it once for an overview. Given that you're not married, that adds some additional complexity.
All this is to say, I believe it would be money well spent for sure...