Intelligence

Need Tax Experts + Real Estate Faculty for Story on New Tax Cuts for Landlords

It’s Erik Martin again with The Mortgage Reports website (www.themortgagereports.com). I’m looking to interview you for the following story. — Why you should consider becoming a landlord to take advantage of the new tax cuts. — Those who own rental properties are big winners of the Tax Cuts and Jobs Act (TCJA) recently passed by Congress. For landlords, the most stunningly good provision of the TCJA is a new tax deduction for owners of pass-through businesses (which can include landlords who own their rental property as sole proprietors who individually own their properties, limited liability companies and partnerships). If your rental activity qualifies as a business for tax purposes, as most do, you may be eligible to deduct an amount equal to 20% of your net rental income. This is in addition to all your other rental-related deductions. If you qualify for this deduction, you’ll effectively be taxed on only 80% of your rental income. Thus, the effective rate for taxpayers in the top 37% tax bracket is 29.5%. This story will share the details of this news and suggest that it may be wise to buy a rental property now to take advantage of these new tax laws, with insights provided by real estate faculty/experts. Below is a list of questions I’m seeking answers to. I can either conduct a phone or email interview (with the latter, please email me back full-sentence written responses that I can use as quotes).