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A comment on Money-laundering oligarchs bought all the real-estate to clean their oil money. Parent comment

Re:Money-laundering oligarchs bought all the real-estate to ... by motohagiography on Monday January 28, 2019 @08:09AM (#19017128)
Do you pay income tax on the rental income as well? This would add about %30-45 to your mortgage payment breakeven as well, no?

If your mortgage payment is $1000/mo, you need that in after-tax dollars in addition to gap months and maintenance. This pushes rents up for single property landlords in the top marginal rate, or am I missing something.

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Re:Money-laundering oligarchs bought all the real-estate to ... by jnwatson on Monday January 28, 2019 @09:06AM (#19017473)
You only pay income tax on your net profit (in the US at least).
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Re:Money-laundering oligarchs bought all the real-estate to ... by motohagiography on Monday January 28, 2019 @10:05AM (#19017924)
Net expenses, but the equity in the property seems like income (as you can tell iana landlord).

Income taxes likely contribute a significant percentage of the difference between mortgage payments an rent prices. For a REIT, this is different, but for an individual owner renting out a second property and paying income taxes on the rent income, would this not create a significant difference?

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