Changes in tax deductions for SALT and mortgage interest for 2018

I guess it also means that if I can find a suitable duplex for $1.8M, it’s worth pursuing because it does save money, but $2M is less so (since there’ll be more maintainence costs that are not immediately deductible)

Why not buy a two unit condo building? Theory being the condos would appreciate faster than a duplex.

I’m not sure what the difference is between that and a duplex.

My goal, though, is not appreciation, but reducing the increase in housing cost when buying a house vs. current rent.

The difference is a larger target market for resale ---- better liquidity.
Just saying that all other factors being equal, two separate condos in one building is more desirable than a duplex.

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I see.

I don’t want to live in a condo. Would prefer a house.

Also, I believe the current forum mantra is “never sell.” :slight_smile:

The other thing is that the larger square footage properties tend to have a better price per sq. ft

Yes & No

No

I was looking at the exact same questions last month. Here’s the thread

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Yes, 100% sure as I did this year tax return.

No, SCH-E can not offset Stocks.

You can not offset Sch-E with your income except if you are a real estate professional. You need to work 750 hours/year as RE pro and if IRS audits you need to prove it.

If you are like elt1 or ptiemann, (there may be others I did not specify here) they are qualified to offset.

https://www.forbes.com/sites/investor/2018/04/11/why-real-estate-may-be-a-big-winner-in-the-tax-cuts-and-jobs-act/#7b2dc7c367f4