Use the table below to determine your total increase in net wealth after renting your home of only ONE Year. We have calculated these values by estimating income tax deductions that would be made: Depreciation of your home, Property Management costs, HOA fees, Property Insurance, and Maintenance on the property. In addition, we have calculated the estimated appreciation, or increase in value of your property, you could expect to see after one year. Then finally, you can see the true financial benefits of owning a rental property!
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| Determine your Tax Bracket by using the table below | ||||
| Tax Rate | Single | Head Of Household | Married filing jointly or qualifying widow | Married filing separately |
| 10% | Up to $9,325 | Up to $13,350 | Up to $18,650 | Up to $9,325 |
| 15% | $9,326 to $37,950 | $13,351 to $50,800 | $18,651 to $75,900 | $9,326 to $37,950 |
| 25% | $37,951 to $91,900 | $50,801 to $131,200 | $75,901 to $153,100 | $37,951 to $76,550 |
| 28% | $91,901 to $191,650 | $131,201 to $212,500 | $153,101 to $233,350 | $76,551 to $116,675 |
| 33% | $191,651 to $416,700 | $212,501 to $416,700 | $233,351 to $416,700 | $116,676 to $208,350 |
| 35% | $416,701 to $418,400 | $416,701 to $444,550 | $416,701 to $470,000 | $208,351 to $235,350 |
| 39.60% | $418,401 or more | $444,551 or more | $470,001 or more | $235,351 or more |
| INSERT YOUR HOMES VALUE | Minimum Total Principal Paid Off | 0 | ||||
| Appreciation (Increase in homes value) | 0 | |||||
| USE THE TABLE BELOW TO DETERMINE YOUR TAX RATE | Total Income Tax Deductions | 4150 | ||||
| What could you get back in Tax Return | 0 | |||||
| Total Wealth Increase (After One Year) | 0 | |||||
| *Based on estimated figures | ||||||
| Determine your Tax Bracket by using the table below | ||||
| Tax Rate | Single | Head Of Household | Married filing jointly or qualifying widow | Married filing separately |
| 10% | Up to $9,325 | Up to $13,350 | Up to $18,650 | Up to $9,325 |
| 15% | $9,326 to $37,950 | $13,351 to $50,800 | $18,651 to $75,900 | $9,326 to $37,950 |
| 25% | $37,951 to $91,900 | $50,801 to $131,200 | $75,901 to $153,100 | $37,951 to $76,550 |
| 28% | $91,901 to $191,650 | $131,201 to $212,500 | $153,101 to $233,350 | $76,551 to $116,675 |
| 33% | $191,651 to $416,700 | $212,501 to $416,700 | $233,351 to $416,700 | $116,676 to $208,350 |
| 35% | $416,701 to $418,400 | $416,701 to $444,550 | $416,701 to $470,000 | $208,351 to $235,350 |
| 39.60% | $418,401 or more | $444,551 or more | $470,001 or more | $235,351 or more |
| **The first year of property management will typically be more expensive then the next few as the property will need to be leased intitially | ||
| Deprecitation | 1/27 of your Homes Value | 3.70% |
| First Year Property Management Costs | $1800 - $3000 | $2,500 |
| Maintenance, Cleaning, Work on the Property | Average - $1000 | $1,000 |
| Mortgage Insurance | Average 1% of homes Value Per Year | 1.00% |
| HOA Fees | Ranging from $300 - $1000 per Year on Average | $650 |
| Home Owners Insurance | Approximately 1.12% of the Homes Value | 1.12% |
| Total Deductions | *Result on main table | |
| Tax Savings | *Result on main table | |
| Appreciation of Property | VERY Conservatively 3% | 3.00% |
| *Texas Real Estate Appreciated 7% in 2017 | ||
| Total Appreciation | *Result on main table | |
| Amount of Principal Paid over 12 Months Depends on how far along the mortgage you are | ||
| 1.61% of Home Value (FIRST YEAR) of 30 Yr Mortgage | 1.61% | |
| After 5 Years - Approximately 2.19% of your Homes Value | ||
| After 10 Years - Approximately 2.74% of your Homes Value | ||
| Most Conservative Principal Paid Off in 12 Months | *Result on main table | |
