Reply to Stocks, rental property, or upgrade house?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Good reasons for option 1. Is the "greater ROI" true on a post-tax basis though?  We would be paying the highest marginal tax rate on any income from a stock market account source. Income from real estate or from primary home capital gains would be deductible. Interest from real estate is also tax deductible. [/quote]

Keep in mind that owning a rental property is likely to increase your taxes.  I have three properties and my taxes increased by approx 9k. The rent gets added to your AGI, so even after depreciation, you usually come out on the losing end.[/quote]

You’re being taxed… because your property is producing actual income, correct?  I’m not quite sure why this is a negative, exactly…[/quote]

Good question. No, I basically break even. But it can vary based on many things that come up like vacancies, maintenance, etc. I'm not saying you will get hammered on your taxes, but the idea that owning a rental property is great for tax purposes is a gross exaggeration and just not true for many people.[/quote]

You “break even” but the property is appreciating and the renters are paying the mortgage, if there is one, correct?[/quote]

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