...But You Have To Pay Tax

Just a short post today and a slight rant about tax...

I was recently reading another blog post about the pros and cons of real estate investment.  There were several comments below....and one really stuck out.

Here is the comment:

"There is no money in landlording. I bought one condo after prices went down by 50% paid cash for it.  Still only make 6% return on it and that if I have tenant renting all the time. Any maintenance or repair or unoccupied take profit off 6%. so if I include that then the return is more like 4%.  Plus you have to pay income tax on it. You tax go up every year. Your maintenance fee go up every year. And you can’t raise rent much or not at all."

I can appreciate his comments, but what really ticks me off is the comment about tax...."Plus you have to pay income tax on it".

....Really?

Tell me a way to make money without paying tax....other than winning the lottery.

It's funny because this is not the first time I have heard this comment.

"Oh yeah, he made $50K on that property, but he has to pay tax.".....no kidding

"That guy makes over $100K.  Think of the tax that he pays!"....yep, probably true.

In Canada, if you make money, you have to pay tax, or you go to jail. 

Being tax efficient is another story.  Deferring tax or starting a corporation to reduce tax is smart.  Avoiding tax all together is another story.

So please, if someone makes money, don't complain about the tax to be paid.   Someone has to pay for the road repairs in our great country!