I currently have a rental property that I have to pay $ 200 out of pocket to make payments. My taxes went up and now I have to pay 238.00 more or give 1500 in a lump sum and only pay 110.00 more. Is it worth paying the 1500 in a lump sum????
2007-07-23 14:42:22 · 6 answers · asked by pink 2 in Business & Finance ➔ Renting & Real Estate
Need advise
2007-07-23 14:50:06 · update #1
If you have the funds and it will not be a big stress, pay the $1,500.
If you are concerned about cash flow, emegencies, other opportunities such as investment properties pay the $238
I rather just get it out of the way, but that is a personal preference.
You are wise to have a rental property.
2007-07-23 14:49:30 · answer #1 · answered by Jimmy 5 · 0⤊ 0⤋
The answer may depend more on your individual budget than anything else. Either way at the end of the year you will take the taxes as a deduction against rental income, the loss from it will reduce the tax debt due IRS. If you can afford the lump sum then thats better. Hope this helps
2007-07-23 21:52:14 · answer #2 · answered by Etta P 4 · 0⤊ 0⤋
I am assuming that when you say, "110 more", that means your monthly amount out-of-pocket will be reduced to $110. If so, you are paying $1,500 for a monthly increase in cash flow of $128, or $1,536 annually. That is over 100% annual return on your investment. If that is the case, it is a no-brainer. Do it.
2007-07-23 21:50:35 · answer #3 · answered by Kevin from DE 2 · 1⤊ 0⤋
you did not mention where?...and you know location location location is the answer to almost every question.
good luck
2007-07-23 21:48:52 · answer #4 · answered by Blue October 6 · 0⤊ 0⤋
It is a personal choice no right or wrong answer.
2007-07-23 21:46:22 · answer #5 · answered by shipwreck 7 · 0⤊ 2⤋
Wow...Sounds good to me.......but I really don't know.
2007-07-23 21:47:42 · answer #6 · answered by dorton girl 5 · 0⤊ 2⤋