Renting taxes - Posted by David


#1

Posted by Dean (IL) on January 18, 1999 at 16:04:32:

Check this thread (as well as the archives) for info on this subject. There are several threads on setting up corporations and / or llc’s to minimize liability and taxes.


#2

Renting taxes - Posted by David

Posted by David on January 18, 1999 at 15:56:41:

I am concidering buying houses for the purpose of rentals. I am curious on how the law reads on taxing the income. If I have a loan payment for $350 and a $400 income off the property, do I have to pay capitol gains on the $400 each month. Also curious if capitals gains for a rental income is %20 or based on income.

Thanks


#3

Re: Renting taxes - Posted by phil fernandez

Posted by phil fernandez on January 18, 1999 at 16:18:58:

David,

It would be my advice that you sit down with a good accountant for an hour. You’re way off here.

Just a couple of things. There is no capital gains tax until you sell the property. You take your rental income subtract your operating expenses, subtract the interest on your mortgage, subtract your depreciation on the building and the bottom line is what you are taxed on as ordinary income.