Do you pay tax on every rent $ received? - Posted by Philip

import · September 2, 2003, 3:28pm

Posted by Philip on September 02, 2003 at 22:36:56:

Thanks that helps.

import · September 2, 2003, 3:28pm

Posted by Philip on September 02, 2003 at 15:28:42:

Or how does that work. I have only visited with CPA 1 time and didn’t cover that.
Philip

import · September 2, 2003, 8:54pm

Re: Do you pay tax on every rent $ received? - Posted by Lyal

Posted by Lyal on September 02, 2003 at 20:54:51:

Phil,
VERY generally… you pay tax on the PROFITS generated by your rental over and above your expenses including, interest on the loan, any materials or labor you put into it, mileage required to administer the rental, legal expenses, etc… You also get depreciation (value of the rental - the value of the land it sits on / 27.5 yrs… yadda, Then you get into capital vs: expense with different depreciation rates…).
Clearer or muddier?
So NO you don’t pay tax on the total rent received.
Lyal