What do you actually end up paying in taxes?
Hi All,
I am under contract on my 3rd acquisition in 2018, so I have yet to actually file a tax return with rental income on it. Is there a general rule of thumb for how much you actually pay in rental income tax after all the deductions? Say your property shows a $5,000 annual profit on paper, once you consider the write-offs like depreciation, mortgage interest, property tax, etc, what kind of tax bill should you expect?
Especially curious because I aspire to one day live off of rental income, so I'd like to get an idea of how much of the profits you actually take home at the end of the year.