= 27d567bc2d48d9f40e9ccc20ea370b15)
Benquo comments on Review: Selfish Reasons to Have More Kids - Less Wrong
You are viewing a comment permalink. View the original post to see all comments and the full post content.
= 783df68a0f980790206b9ea87794c5b6)
Loading…= b715d02e85f7b3b4ae65ca3d3e450868)
Subscribe to RSS Feed
Powered by Reddit
= f037147d6e6c911a85753b9abdedda8d)
You are viewing a comment permalink. View the original post to see all comments and the full post content.
Comments (257)
I'm not sure I understand what "conversion" you're talking about, but it sounds like you might be saying that the landlord has no mortgage interest deduction, so they need to receive a larger rent payment to break even, than it would cost the renter to own the same property. If that's not your point, then disregard the rest of this comment.
To the landlord the mortgage interest is a business expense and can typically be deducted. So there's (ceteris paribus) no difference between the net cost of the mortgage to the landlord, and to a homeowner.
What I'm saying is that you can either pay $2000 of rent using post-tax income or $2000 of mortgage using pretax income. This might work out to the difference between a $3300 mortgage payment (pretax income) or a $2000 rent payment (after the $3300 has been taxed at an e.g. 39% marginal rate by state and feds).
OK, that's what I thought you meant, thanks for clarifying.