Tax Impact Projections
See how your rental property tax impact changes over time with multi-year projections.
How Multi-Year Projections Work
The estimator projects your tax impact over your chosen hold period (1-30 years). Each year, rent grows at your appreciation rate, property value and expenses inflate, and mortgage interest decreases as your loan amortizes. The result is a clear picture of how your tax situation evolves from day one through your entire ownership period.
- Rent grows at your property-specific appreciation rate each year
- Mortgage interest decreases as principal paydown accelerates
- Depreciation remains constant (straight-line over 27.5 years)
- Expenses inflate at 2% per year (configurable)
Key Insight: The Tax Crossover Point
Most rental properties start as tax losses (thanks to depreciation and mortgage interest) but eventually become taxable as rent grows and mortgage interest shrinks. The projections show you exactly when this crossover happens so you can plan ahead — whether that means cost segregation, a 1031 exchange, or simply budgeting for the tax bill.
- Early years: high mortgage interest + depreciation = tax loss (savings)
- Middle years: rent growth outpaces deductions = crossover to taxable
- Late years: minimal mortgage interest, max rent = highest tax impact
Sample Output
See what this feature calculates for you.
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