Quote:
Originally Posted by ftblstr2319
A little something I completely forgot about...I have two houses in my name that 1 is currently being rented out and the other my father lives in....We went in on them last year (which I am not completely comfortable with but he's my dad what can I say). I am not worried about the mortgages getting paid (he has the money), and he is well aware that in the next two years they are going bye bye regardless.
This is the first year I get to write the interest off. An $1800 and a $1300 mortgage a month.
Does that affect me investment wise at all?
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This may affect the advice I gave earlier. If you are writing off interest, I assume you are also claiming the rent as income?
What is the total amount of rental income received?
What are the total amounts of deductions you are taking?
It's possible you are in 28% tax bracket with the higher income (so the deductable IRA saves you even more).
It's possible you are in 15% tax bracket with the increased deductions (so the Roth IRA is a better deal).
It's possible you are still in 25% bracket because the rental income was offset by the rental deductions.
I would suggest using turbo tax this year (or a similar program) so you can add tax planning to the list of things you need to learn about.