Tuesday, April 10, 2012
Something Just Doesn't Feel Right This April 15th - But I'm Not Complaining
Don't get me wrong - I am exceedingly comfortable with the concept of "trade-offs", I have never, ever complained about paying Federal Taxes, and I love being a Renter. Confused about how I am going to link this together? Here's the deal - since I an a Renter, I don't pay any mortgage interest. Since I don't pay any mortgage interest, I am not itemizing my deductions and just taking the standard deduction for a married couple. So my trade-off for the ease and carefree life of a renter is that I am not getting a Refund. Not even one cent. For the first time in my entire life. Of course, I don't have to save that refund for the eventual house repair.
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Sigh, you don't know how I envy you. We are landlords and doing our taxes is such a pain in the butt. I find myself advocating to sell once I'm retired.
ReplyDeleteI spend days and days (well, several hours each day, until I lose my temper or start crying) on my taxes. I file tax returns in Oklahoma, Utah, the US and the UK. The UK quit making mortgage interest deductable some years back, yet another reason I was glad to pay it off. I love living in a paid off home, but you are far more mobile and can flit off and live anywhere you like far more easily! Like Terri, I'm thinking of selling the rental properties once I start drawing my retirement funds. (And then the tax return will be even more complicated owing to those sales...) Lucky you - refund or not!
ReplyDeleteTax time is painful at our house. My husband completes them with the approved software, which makes it less complicated, but he always gets "riled up" because we get hit so hard.
ReplyDeleteWe get some back from federal, but then have to pay the state. It is not my favorite time of year.
ReplyDeleteHi Terri - We were both landlords when we got married. A great tax benefit. In my high earning period, (pre-motherhood full time work), sheltering all that income was perfect. We made just one mistake during this time - when we rented a small house to two chain smokers. I realize this is a West Coast thing, but we could not sell that house with it's smoke smell. And after we replaced carpet, drapes, and all the paint, it still had the reputation. We actually had to move in, which worked pretty well, since when we sold it two years later, we didn't have to pay Capital Gains. That could be a good retirement plan - move into your rental for 2 years, then sell as a primary residence and move into the next one. (Unless that particular tax quirk has been eliminated.)
ReplyDeleteHi Shelley!
ReplyDeleteLast year, I did Oregon, Oklahoma, and US, but I know if someone had thrown on a UK return too, I would have gone mad! Crying seems like a very reasonable response. If you do sell those rentals, there should be just one year of complicated returns - and you can pay someone to do them that year.
I guess it's patterning, but I don't care about the mobility of renting, I want the complete lack of responsibility for repairs and such. We don't have to paint, care for a yard, or even exterminate the pests. Like my husband says, his life used to be work and then yard or home repair until dark. Now all he has to asks after work is "Where's the Jack Daniels and where's the remote?" Good Times!
Beryl, my husband and I are renters and LOVE it! If something breaks down, we make a call. Should we decide to move in a couple of years, we move...no worrying about selling or if we will lose our shirts. If I could ever get to the point where I don't need a car? That would be pretty near perfect!! Hugs! ~Serene
ReplyDeleteHi Sanda - That software is one of the best inventions ever. At least when you get riled up about the amount, you aren't already steamed up about all the work you did on the return.
ReplyDeleteHi Debbi! Last year was the first time I had to file a state return. As awful as I thought living in Seattle was, at least there is no state income tax in Washington. Some people try to have it all, by living in Washington right by the Oregon border - since Oregon has no sales tax and you can just cross the river any time you have a big purchase to make. So no state income tax or sales tax.
ReplyDelete