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Landloards and the 15K tax credit....
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Landloards and the 15K tax credit....
Posted by imthekevinofcindyandkevin
No soapbox just the truth. I know it's hard to believe that there are people who actually think doing the right thing is it's own reward.
Yes. I also believe there is a big difference between "everyone is going to get screwed, the world is going to end, we have ourselves to blame, bla bla bla" (ie: the soapbox)...
... and somebody doing LEGAL things to minimize their tax liability.
An investor going out and buying a second house is most definitely doing the right thing. They are pumping mortgage tax into the state. They are inflating the RE market taking a house off the market. They are pumping rental income into the federal government. There are plenty of benefits from this.
Don't worry... the world isn't going to end. 
If the federal government wants to waive 15k of tax liability for a year, you are dammed sure a CPA is going to look to take full advantage of that (if its possible "legally"). That's THEIR JOB.
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Posted 2/6/09 5:39 PM  |
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Prudential Douglas Elliman Real Estate
Long Island's Largest Bridal Resource | Long Island Weddings |
itkocak
Member since 7/07 7639 total posts
Name:
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Re: Landloards and the 15K tax credit....
Message edited 11/23/2011 3:33:46 PM.
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| Posted 2/6/09 5:48 PM |
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ave1024
I Took The Wrong Road
Member since 12/07 6153 total posts
Name:
That Led To The Wrong Tendencies
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Re: Landloards and the 15K tax credit....
Most people aren't going to get the full 15k anyways.
Your AGI would need to be high enough so you have a 15k tax liability for the year, but not too high that you don't qualify for it period.
Once your AGI goes past 150k (75k for single filers), the tax credit starts to get smaller (the same way the stimulus checks worked) and I think by 170k or so it disappears.
So a family that makes over 170k a year and buys a house wouldn't get the credit regardless.
I think people with AGI somewhere between 140-150k would get the most benefit from this.
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| Posted 2/6/09 6:26 PM |
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Kara
Now Zagat Rated!
Member since 3/07 13217 total posts
Name:
They call me "Tater Salad"
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Re: Landloards and the 15K tax credit....
Posted by ave1024
Posted by imthekevinofcindyandkevin
No soapbox just the truth. I know it's hard to believe that there are people who actually think doing the right thing is it's own reward.
Yes. I also believe there is a big difference between "everyone is going to get screwed, the world is going to end, we have ourselves to blame, bla bla bla" (ie: the soapbox)...
... and somebody doing LEGAL things to minimize their tax liability.
An investor going out and buying a second house is most definitely doing the right thing. They are pumping mortgage tax into the state. They are inflating the RE market taking a house off the market. They are pumping rental income into the federal government. There are plenty of benefits from this.
Don't worry... the world isn't going to end.
If the federal government wants to waive 15k of tax liability for a year, you are dammed sure a CPA is going to look to take full advantage of that (if its possible "legally"). That's THEIR JOB.
YOU are the one who is either talking about two, completely different things or just doesn't understand the system... A landlord CANNOT legally claim a rental property as his primary residence.
Posted by ave1024
Posted by Kara
Legally, you can only do that if one of you lives in each house. If you're both living in house #1 and collecting rent from the house you bought in 2009, then the 2009 home is not your primary residence. Declaring it as such would not be legal. You can sugar coat it all you want, that doesn't change the law.
And legally... it isn't very difficult for a husband and wife couple to legally have two separate primary residences.
But of course that would be up to a CPA to figure that out.
You either REALLY don't understand the law and what tax fraud is or you don't understand you are talking about two totally different things. Or you just think you'll get away with it and don't care. However you view it, you cannot own two single-family residences, each claim a different primary residence, and still collect rent from a tenant on one of those properties. I don't have to be a CPA to know that would be tax fraud. If you're going to constantly go around giving tax and legal advice without any credentials, then at least make sure it's sound advice. If not, and you really DO plan to do something like this, you'd be smarter to keep it to yourself rather than broadcast how awesome you'll be by cheating the system.
And I couldn't care less if you think I'm on a soapbox... I'm not posting for your benefit. I'm posting for the benefit of future people who read this thread who actually think what you are saying is perfectly fine. It's not. There are plenty of legal, legitimate ways to make money on rental properties. Good businesspeople would know that and not need to cheat the system just to get a $15k tax cut. (And yeah, yeah, yeah, you're not cheating the system... but if you claim a rental property as your - or your wife's - primary residence - that IS cheating the system and it IS illegal.)
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| Posted 2/7/09 8:17 AM |
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Jackie24
~We Did it~
Member since 7/06 6718 total posts
Name:
Jackie
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Re: Landloards and the 15K tax credit....
ITA with PP, this is a great incentive, but still not enough for some people to afford a home, or even want to own a home for that matter.
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| Posted 2/7/09 7:14 PM |
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| Pages: 1 [2] |
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