Dealing with Negative Equity and Rent Vs. Sell
Jul 25th 2008, 10:35 am
#16
Forum Regular
Joined: Jul 2004
Posts: 102
Re: Dealing with Negative Equity and Rent Vs. Sell
Yes you can deduct the mortgage payment as part of your costs (800pounds * 12).
But this is basically zeroed out by the profit you make (900pounds * 12).
Your other costs: management fee, insurance, repairs, etc, will probably result in a small overall loss every year.
In other words you deduct the mortgage from your tax, but you also have to pay tax on the rent you are making.
