All Forum Posts by: Melissa Jones

Wondering if the owner of the mobile home/tiny home on wheels receives the tax bill on their unit or if the landowner gets billed with increased taxes for the improvement and just adds it in to the lot rent.  We are in Wisconsin.  Thanks!

Hi CPAs, David Greene once mentioned taking 15 properties where you own them free and clear and doing a loan on one every year for 100k for a 15 year term and every year doing this with one of your properties to live on 100k of tax free money indefinitely.  My question is does this make the best sense?  If you just lived off the rents instead of doing a loan you'd be paying tax on the rents but if you did the loan you'd be paying interest to the bank instead of taxes.  Assume a 24% federal and 6.27% WI state income tax.  Of course I should ask are rents taxed at income tax rate?  Also if you did the loan figure 2k of closing costs & 5.5% each time as well.  (doing 5.5% since investment property is a bit higher and we arent likely to stay at these ultra low rates forever).

Thanks for your thoughts!

~Melissa