Quote:
Originally Posted by goodlife36
The property is in New York. I am still having a little trouble understanding. I want the income reported on my taxes to be as low as possible to reduce my tax liability. On the other side, I want as much of that income to be used to offset the mortgage to qualify for a new mortgage. Do you know of a reference that I can read? I think my understanding will increase once my taxes are done. Thanks for your help.
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It is one way or the other , you either make more and pay more in taxes and can borrow more , or pay less in taxes and can borrow less.
The only way see around it , is to make capital improvement where you get to depreciate them, but then it hurts your cash flow a lot in the year that you do them.
Lets say you have a $100 a month cell phone bill $1200 a year and it is something you'd have regardless of your rental. If you decide to use the phone as a business expense, you might save on your taxes but now your property is making $100 less per month. You'll have to decide this on you own before you do you taxes.
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