Skip to content
Tax, SDIRAs & Cost Segregation

User Stats

12
Posts
1
Votes
Joseph Morell
  • Investor
  • Falls Church, VA
1
Votes |
12
Posts

First Year Investor Tax Question

Joseph Morell
  • Investor
  • Falls Church, VA
Posted Feb 20 2014, 11:24

Hey guys,

I'm sitting here pouring over my tax documents getting ready to drive them up to my CPA, and although I'm sure he will file them correctly, I was hoping to gain a better understanding of them before I file.

First question is how this side of my income will be taxed. Specifically, my property manager has listed income as the full amount of monthly rental income, and my expenses as the property management fee (9%). While I understand these two numbers, wouldn't my monthly mortgage come into play here? If I'm going to be taxed on the full amount of rent recieved, not Rent-Mortgage-Property Management, it's going to be darn hard to make any money in this business!

Second, my rental property is a condo, and it seems to be well published that I can deduct the condo fees as expenses, does this change since the condo fee provides some utilities? Would I be able to deduct a % vs the whole amount?

Third, the listing fee is not listed on the income/expense report. I emailed my property manager, and he told me that the listing fee is not listed, and neither is one month of income, to offset this fee.

Any help would be great! Overall 2013 went fine for my first year as a real estate investor, and I'm looking forward to purchasing more properties! Provided this tax situation doesn't eat up all my profits!

Thanks Again!
Joe

Loading replies...