My Thursday Three's!
1: How do I pay taxes on the rent money I recieve from tendants/do I have too?
2: What loan finances avoid having money in the bank for more than two months? (Is that even a thing?)
3: What are some tax benefits and how do they work in owning property?
-Thanks to everyone who shot last week's questions into my inbox as well! My apologies if these questions aren't as structured as I'd hope.
(A lot of 2 in 1's haha.. )
1: Your income from the rent is most likely to be covered by the depreciation, a tax term that defines the useful life of your rental property. It is considered as a phantom expense in tax law
2: This is very specific. Personally, I have not encountered one that does not allow you to have any cash in the bank. You should consult with your loan officer in case they have some unique product.
3: Same as the first part, depreciation. The tax benefits are very well elaborated on BP youtube. You should definitely check it out.
Quote from @Jonathan Cai:Thank you for the feed back Jonathan!
1: Your income from the rent is most likely to be covered by the depreciation, a tax term that defines the useful life of your rental property. It is considered as a phantom expense in tax law
2: This is very specific. Personally, I have not encountered one that does not allow you to have any cash in the bank. You should consult with your loan officer in case they have some unique product.
3: Same as the first part, depreciation. The tax benefits are very well elaborated on BP youtube. You should definitely check it out.
