Hello Anon, In Canada there is no way to write off the full costs of your main residence. If you are self employed you can claim a portion of your home as an office you will be able to write off a portion of your home expenses on your taxes. Speak to an Accountant to make sure how much you can claim and if you are eligible. If you have a property that is considered a rental property you can write off 100% of the cost of owning that property against the income you get for rental of that property. We are all hoping that Canada will fall in line with the US regarding the ability to write off your mortgage, property tax etc for your main residence but it is not a law yet. If you or any reader have a question regarding this or any topic please do not hesitate to contact me at any time. Abraham Niyazi - Mortgage Agent - Lic#M08010640 - Centum One FInancial Corp - Lic 10758. Cell: 416-993-4082 Toll Free: 1-866-728-3708 http://www.centum.ca/abraham_niyazi/ I deal with 25 Banks/Lenders and can do mortgages across Canada except Quebec.

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Does anyone have the formula to calculate the percentage return on a real estate rental property that takes into account: monthly income, monthly expenses, property appreciation, mortgage interest rate and the irs tax depreciation?

Hello ...Yes... these forms are available. H&R Block offices all have a real estate book available as a free handout specifically for rentel real estate. You list income and expenses. Depreciation is based on the value of the buildings, land is never depreciable. Good luck...

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10 points for best answer estimated defined benefit income @ retirement? estimated defined benifit income @ retirement? estimated interest & dividend income? cash flow from real estate @ retirement? total guaranteed annual income? shortfall retire inc. = desired - guaranteed? ilifetime earnings (ss benefits)? total assets? net worth (total assets - total debt)? home's market value? home mortgages? home's equity (market value - mortgages)? net-worth - home equity? total federal & state income taxes paid last year? credit card interest paid? annual disability income coverage? life insurance death benefit: him? life insurance death benefit: her? ratio analysis worksheets information needed total guaranteed annual income your name: dollar amounts amount saved last 12 mo. (see savings stmt.) real income (from real income statement) life time earnings (ss benefits statement) total debt (includes all mortgages) data is below: jack is a 43-year old corporate employee who earned $80,000 last year. his w-2 form shows that he paid $7,000 in federal taxes, $2,500 in state taxes, and $1,160 in medicare taxes. his w-2 form also shows that he made contributions to an employer sponsored retirement account in the amount of $12,000. jill is a 41-year old self-employed psychologist who earned $73,000 last year. during last year she incurred the following business expenses: $3,000 for advertising, $7,000 for the rent of her office, $5,000 for utilities, and $2,000 for travel expenses. in addition, she used one of her vehicles for business only and during the past year she drove the vehicle for 9,000 miles. jack and jill have 3 children: an 18 year old son, a 10 year old daughter, and another 5 year old son. last year they paid $7,000 in child care expenses for their 5 year old son and $10,000 in college tuition for their 18 year old son. jack and jill own a house that has a market value of $650,000 for which they took a $400,000, 30-year mortgage at 6% interest. they have 25 years left on their mortgage. last year they paid $5,250 in property taxes. they also own a duplex that has a market value of $450,000 for which they took a $350,000 30-year mortgage at 5.5%. they have 28 years left on their duplex mortgage. they have rented out the duplex and last year they earned $26,000 in rental income. during the past year they incurred the following expenses for their rental property: $300 for advertising, $750 for insurance, $5,000 for repairs, $4,500 for property taxes, and $6,000 for utilities. they also incurred a major expense when they had to replace the roof of their rental property, an expenditure that cost them $10,000. in addition, last year jack and jill sold some stocks for which they earned a capital gain of $5,000. their current portfolio includes 100 shares in each of the following stocks: ibm, apple, and ford. the couple’s liquid assets consist of $20,000 currently held in money market project 6: income taxes (cont.) accounts for which they earned $1,000 in interest income last year. they also incurred $6,000 in investment advisor fees. jill is planning to make a $4,000 contribution to her ira account before april 15. her ira has a current value of $30,000 and is held in a money market fund. jack has a 401k plan with a value of $100,000 that is invested in the fidelity contra fund and the fidelity magellan fund. if you need to estimate how much social security tax was withheld from jack’s salary. go to www.ssa.gov to find an estimate. keep a copy of the case study as you will need it to complete future projects. print a copy of jack and jill’s tax return and bring it to class on the due date. jack and jill’s retirement goals: 1.retire when jack turns 65 years old. 2.retire with an income of $130,000. 3.maintain the purchasing power of their income thru retirement. 4.leave a legacy to their children equal to the value of their home.

Here is a good resource.

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Does anyone have the formula to calculate the percentage return on a real estate rental property that takes into account: monthly income, monthly expenses, property appreciation, mortgage interest rate and the irs tax depreciation?

Capitalization Rate (or "Cap Rate") is a measure of the ratio between the net income produced by an asset (usually real estate) and its capital cost (the original price paid to own the asset). The rate is calculated in a simple fashion as follows: Net Income / Capital Cost = Capitalization Rate For instance, if a building is purchased for $1,000,000 sale price and it produces $100,000 in positive net cash flow (the amount left over after fixed costs and variable costs are subtracted from gross lease income) during one year, then: $100,000 / $1,000,000 = 0.10 = 10% That asset's capitalization rate is ten percent. Capitalization rates are a measure of how fast an investment will pay for itself in net cash flows. In the example above, the purchased building will be fully capitalized (pay for itself in net income) after ten years. In real estate investment, commercial buildings are often valued according to project capitalization rates used as investment criteria. This is done by algebraic manipulation of the formula above: Capital Cost (asset price) = Net Income / Capitalization Rate For instance, in valuing the projected sale price of an apartment building that produces an annual net cash flow of $10,000, if we set a projected capitalization rate at 7%, then the asset value (or price we would pay to own it) is $142,857.10. Capitalization rate calculation of this type used to be the standard in evaluating real estate investments and is still included as the third element of any complete real estate appraisal. Capitalization rates do not, however, take into account the capital appreciation of an asset over time (an increase in value over time due to a rise in market price), nor do they traditionally factor in other cash flows, such as tax shelter and cost recovery (otherwise known as "depreciation"). Thus, capitalization rate valuation has become less important in real estate finance than it once was. One advantage of capitalization rate valuation is that it is entirely independent from an "market-comparables" type of appraisal, and it is therefore often still used as a "reality check" on other value analysis. In Europe, this is also called "Yield". Your DSCR (or Debt Service Coverage Ratio) can only be figured upon the property that you are taking into account. A DSCR of less than 1 = a loss of income. All this information should be provided to you upon getting an appraisal on the property.

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Does anyone have the formula to calculate the percentage return on a real estate rental property that takes into account: monthly income, monthly expenses, property appreciation, mortgage interest rate and the irs tax depreciation?

You can't do it with a single formula. You need to build a stream of cash flows (usually, annual rather than monthly), add property purchase at the front and property disposition at the back end, if applicable, and find the IRR of those cash flows.

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Does anyone have the formula to calculate the percentage return on a real estate rental property that takes into account: monthly income, monthly expenses, property appreciation, mortgage interest rate and the irs tax depreciation?

Use a spreadsheet to determine your net income per month after expenses (including mortgage interest, and the affect of tax depreciation). You can include your property appreciation in the net income calculation. That net income, divided by your total initial investment, is your rate of return.