Author Topic: tax subsidies applicable for my situation?  (Read 184 times)

bradleylsmith

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tax subsidies applicable for my situation?
« on: October 24, 2020, 08:38:22 AM »
hello again. Since first posting I've found this community to be a safe haven for all money situations and a lot of brilliant responses from brilliant people. So here I am again.

I recently bought a house for $500k+ in Westminster, CO. I got a 2.75% interest rate on 30 years fixed. I put 10% down and pay PMI.

I also decided to help a friend out and let him move in rent free plus a little bit of money for usages of things. $200 / month is what we figured would cover that. In exchange he would help my finish out my basement so I can rent it to others in the future.

I was reading the comments on the latest MMM post and came across this nugget:

"Will admit that the unconscionable tax subsidies for landlords appeal for those with a large separate income. Hope Colorado isnít in a rental bubble because of Covid. Sure looks like too high a rent to household income to me, but these things can keep going a while."

I happen to have a large, separate income. Am I missing some kind of tax arbitrage that I could be doing because I'm now a landlord?