I am renting now and my only income is through the jfull time ob I have. I am expecting a pension payout from my previous company. This payout will be fully taxable if i cash it since i am younger than 59. I would like to use this cash for downpayment to buy a house as an investment for rental income. I know i have to declare the rent as income but can i deduct the downpayment and mortgage payments against my regular income including the pension payout?
Thank you
Nader
Answer
You need to see a tax counselor to set up your purchase property. Normally in a true rental investment property you report rental income as income and mortgage interest as an expense. You can't report mortgage principal or the downpayment. Deductions are different.
No comments:
Post a Comment