2016 is the first full tax year where I’ve owned an investment (rental) house and for those of you interested in how this ends up applying to your US Federal taxes I thought I would share how this gets applied.

Now I’ll preface this by saying that the goal here is not to analyze strategies for your properties (although I do hope you infer and share your own from this information).  The goal with this post is really just to share how it ends up getting applied so you can start thinking about your own investment strategy if you are looking to purchase rental properties and hopefully to encourage some open dialog (post below).

What this shows is a total cost of $19,203 and a total revenue of $21,945 – what this doesn’t show is things like vacancy (which I had none in 2016) or principal paid against the mortgage.  It also is only a single year of repairs/maintenance, which can fluctuate greatly year to year.

Okay, enough talking…here it is (click for a full-size picture):

As always, hope you find this interesting/helpful and don’t forget to share!

Erik

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