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| *Loan,banking and credit>>>income tax |
Tax on property's income? |
The following question pertains to properties in the Los Angeles area.. If you own a home (still owe some on it), and buy another home, and rent that home out, do you owe any extra taxes on it? I mean is it counted as income and then.. ? The other home is rented out for 2000 a month, but the mortgage and taxes combined equal 2500. Yes, it is income, but in your case a loss. Like already stated, you get to deduct expenses, depretiation, mortgage interest, and property taxes. File it the proper way and you will still come out ahead. you now have crossed the line...you need to ave an accountant to assist you and do your annual taxes for you. but yes, if you are not living in a home, you are gonna have to claim the income....how that will offset with your payments and tax etc...you know everybody's case is different. get yourself a very good accountant. good luck if the numbers you give are totals for a calendar year, then you have a loss (on 1040 sched E), (you can also deduct depreciation, maintenance, any utilities that you have to pay like water and trash that the renter doesn't pay but you can only deduct the mortgage interest AND you can't deduct that interest on you itemized deductions. The rental loss will reduce your taxable income |
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