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Why A Big Tax Break For Landlords Costs Millennials And First Time Home Buyers Big Time
Source:
forbes.com
- Jun 21, 2018
This has to be one of the stupidest tax breaks ever.
The depreciation tax deduction lets landlords (but not homeowners) deduct about 3.6% of what they paid for their houses from their rental income each year, essentially treating homes like cars that famously start to lose value the moment they leave the lot. In real life houses gain value—appreciate—over time.
Since they pay less in annual federal taxes, landlords can afford to pay a bit more when buying rental houses, often smaller properties that would otherwise be purchased by young, first-time buyers. This drives up home prices for Millennials and other first-time home buyers.
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Category: General Business
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