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Do I end up paying more taxes on an investment property?

I'm looking to purchase a duplex as an investment property - first time homebuyer but there's the potential that I will not be living in the property. Do I still qualify for the typical homeowner tax deductions? If the property generates any money (after property taxes and mortgage payments), I assume this will be considered additional income and I will have to pay taxes on this. Are there any additional taxes I'm missing? Is it considered capital gain when/if I sell the house down the road? I don't know very much about this. Thanks!
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September 28 2011 - US
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Answers (2)

I would seek the expert advise of your CPA regarding the tax issues. They are the specialist in their field. With the many many changes being made to the tax laws you most certainly need the most correct information there. Try getting in touch whoever does your taxes. They should most certainly know the ins and outs on the tax laws. It would be better to be informed first before making any decisions. Secondly, I would get with your local lender and discuss what's required for funding a loan like this one. They specialize in funding and know how to not only get your the best rate but also get you the best terms. Try making some of these calls first. Thank you for your question. 
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September 28 2011
Your tax treatment is different depending on whether it is an investment property or personal residence. Most houses have taxable losses which actually save you money - unless you pay cash where you have no interest expense. There was a really good article in Zillow blog a week ago addressing this exact issue....by a pretty smart author. http://www.zillow.com/blog/2011-09-20/do-you-understand-income-tax-considerations-of-rental-properties/ Good luck!
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September 28 2011
 
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