Can I use the income coming in from my rental properties to buy more properties? How is the tax going to be calculate it since I haven't paid taxes on my current rental income for the year? Supposed that after paying all expenses I have $10,000 in untaxed profit for the year. Can I use that as a downpayment for a new property? I'm just afraid I won't have money to pay my taxes next year if they tax me on $10,000.
if you have losses, you wont have to pay taxes. in other words, if your 10k profits go into a house that takes 15k to update, you wont have to pay taxes.
but it all has to do with how it passes through your personal w2, and schedule XZY
talk to a CPA. yes, they are like lawyers and we all hate them, until you need one. then, we are glad they are on your side.