buying first property and rental one
planning to buy a rental property - couple of questions 1.) how is the rental income taxed ? 2.) how do we cover maintanence charges as tax credit ? any other tips or suggestions
planning to buy a rental property - couple of questions 1.) how is the rental income taxed ? 2.) how do we cover maintanence charges as tax credit ? any other tips or suggestions
Rental income is taxed as regular income, but only after you take away stuff like mortgage, insurance, maintenance, etc... However, your deductions can not be more than your rent - so you can’t get a larger deduction on your taxes if you don’t charge enough to cover your expenses.
You can't deduct mortgage in full, only intererest. Also PMI and any other insurance and property taxes.
You’re correct. I didn’t mean mortgage, I meant depreciation.