Quote:
Originally Posted by Vegas69
But you can write off the car payment for business. Would you spend a dollar to get .25-.33 cents(tax bracket)? I used to be that bad at math too.
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Same with rental homes... "you can write off the depreciation and save a ton on taxes..." What they neglect to tell you is if you EVER sell the property, you reclaim all of said depreciation as regular income at whatever tax bracket you happen to be in at the time, and any extra gain is taxed as Capital Gains.
Everyone I know that got into the rental home racket has either claimed bankruptcy and lost them all or is still holding onto them and dealing with tenants daily because they can't afford to sell them.
This is where all of the accounting classes I took in school helped me to avoid certain investments...