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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55708
Experience:  29 years of experience as a tax, real estate, and business attorney.
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I am buying a vacant house in California that I intend to use

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I am buying a vacant house in California that I intend to use as an investment/rental property. As an individual, in general, what are the Federal tax treatments:
Total annual payment $25,000 of which $20,000 is interest. Property Taxes $4,000. HOA $2,000. Hazard insurance $600. Property management $2,000= total annual expenses of
$33,600. Annual gross rent colleced will be $30,000.

Good evening. You will get to deduct against your $30,000 in income the following: i) $20,000 in interest (not principal); ii) property taxes; iii) HOA fees; iv) insurance; v) management fees. You can also depreciate the property...which is a non-cash deduction.



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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

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