All Forum Posts by: Angie Brown

@Jon: I love your pig anaolgy lol. Don't have a choice other than hold on to it. We are $12k upside down. As long as we don't have vacancies we net 0 for the property, so I'm ok with that and chalk it up to a lesson learned. Only way to turn it around is to come up with about $40k, then we can refi which will turn it into a profit some what. It doesn't do anything for the loss equity though.

@Steve No, I'm not factoring depreciation. Will be paying $40k for house 20%downpay/30-yr5.2% (non owner occup rate) taxes/insuranc around $2k/yr. Rent will go for a min. of $700/month.

So, how will purchasing this property effect my taxes? Isn't it lumped to my other income, therefore at a higher tax rate than if it where seperate? Would creating a business allow me to pay taxes seperate from my personal taxes/income, therefore at a paying taxes in a lower tax bracket?

Hubby and I purchased one duplex 6 yrs ago. After mortgage payments/insurance/taxes/expenses. We are at 0 profit at best, some years have been at a loss which helped cut our personal taxes.

Want to purchase 2nd prop which after calculations will gross $300/month income. Our income is over $150k what can we do to minimize our taxes? Can creating a business entity help us?