Posted by jim on February 12, 2002 at 18:48:29:
ALL income, including rental income is subject to income tax and must be reported each year. Rental properties must be depreciated according to IRS guidelines. However, once depreciation and other expenses are taken into consideration, one could very well have a loss from their rentals.
Partner Deal - Posted by Kim
Posted by Kim on February 12, 2002 at 08:41:03:
Hello All,
I am considering doing my first partner deal. How do we handle the rent/depreciation if we each put up 50% of the downpayment and each of us is on the mortgage. I can’t rightly ask tenants to make out a check for 50% of the rent to each of us. Wondering how to handle income taxes at year end also.
I have other rentals without partners, just need some help with this one.
Thanks,
Kim
Re: Partner Deal - Posted by Dan(IN)
Posted by Dan(IN) on February 12, 2002 at 08:47:14:
It might be helpful to have your tenant make payments to a third party(such as a trustee). I don’t understand what income tax your referring too, my understanding rental income wasn’t subject to income tax. Is it?