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How do I calculate my effective rent as an owner?

Started by Baier
over 5 years ago
Posts: 41
Member since: Jul 2007
Discussion about
Let’s say I pay $1800 a month in mortgage and $1100 in maintenance. The co-op tells me per share deductions in 2019 were: Interest $16 Real Estate tax/Gross $110 For 100 shares, I can deduct $12,000 from my income. If I’m in the 24% tax bracket, does that mean $2,880 (or $240 a month) is coming back to me? And say equity portion of the mortgage is about $600 a month. Mortgage interest received was $14,000. Does this mean $3,360 (or $280 a month) is coming back to me? Is this how my effective rent parses out? Mortgage +$1800 Maintenance +$1100 Co-op deductions -$240 Mortgage interest deduction -$280 Equity -$600 Total $1780 Is this math right?
Response by front_porch
over 5 years ago
Posts: 5316
Member since: Mar 2008

I'm not a tax pro (I'm a broker) but how can you deduct $12K in co-op deductions from your income? Don't you hit the SALT cap?

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Response by Baier
over 5 years ago
Posts: 41
Member since: Jul 2007

Thanks -- I didn't know about the SALT cap. I guess I should raise my monthly effective rent by $2000/12?

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