Comments on: Help A Reader: From Buying A House to Selling Wholesale Goods on eBay http://www.moneycrashers.com/help-a-reader-from-buying-a-house-to-selling-wholesale-goods-on-ebay/ Personal Finance Blog, Your Guide to Financial Fitness Thu, 09 Feb 2012 21:28:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Elizabeth Ihttp://www.moneycrashers.com/help-a-reader-from-buying-a-house-to-selling-wholesale-goods-on-ebay/#comment-8951 Elizabeth I Sun, 31 Jan 2010 05:18:18 +0000 http://www.moneycrashers.com/?p=1227#comment-8951 I have to disagree with you on the rental property. If the rent covers the mortgage, you should be in good shape. However, you need a good accountant to get you started. Tax wise, rental properties usually appear as a loss coming straight off you income even if the rent is covering the mortgage. (There are scenarios which would make this untrue.) Also, you can run liability risks in rental properties. You may wish to put the rental in your name and perhaps your primary dwelling in your spouse's name to reduce liability. Also, you can incorporate the rental property, which would reduce your personal liability, but this would only be strategic if there was no mortgage on the property. Having a mortgage and incorporating a property can have HUGE tax consequences. I have to disagree with you on the rental property. If the rent covers the mortgage, you should be in good shape. However, you need a good accountant to get you started. Tax wise, rental properties usually appear as a loss coming straight off you income even if the rent is covering the mortgage. (There are scenarios which would make this untrue.)

Also, you can run liability risks in rental properties. You may wish to put the rental in your name and perhaps your primary dwelling in your spouse’s name to reduce liability. Also, you can incorporate the rental property, which would reduce your personal liability, but this would only be strategic if there was no mortgage on the property. Having a mortgage and incorporating a property can have HUGE tax consequences.

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