Taxes on rental income

[Reagan Wilson]

I’m 22 just bought my first property this past April and it isn’t the most fantastic purchase thus far.

I’ve only made roughly $700 thus far including equity gain in the property.

I do not live in this property and what I am fearing is tax time. When my rental income of roughly 25k is tacked onto my regular wage which will be roughly 150k this year that’s going to break me

Going to end up paying close to 40% I imagine.

Is this just a bad purchase or is there any way to reduce my tax on rental income?

They tax rental income not profit correct?

[Joseph Palmiero]

Your rents received minus your rental expenses will be taxed.  Don't forget to include interest expense and depreciation in your expenses.