Rental Expenses and AGI

[Jason Wilde]

Hello. Long-time lurker here. I'm hoping that someone here can help me.

I'm trying to estimate my AGI (assuming rental income only), but am struggling to find straight answers. 

I have my lease agreements set up where I cover monthly utilities, lawn care, plumbing repairs, etc, (in addition to the standard things like property taxes, insurance, mortgage). In turn, I charge a higher rent to cover those extra expenses.

Use purely hypothetical numbers, suppose I collect $50k from tenants each year. From that, I pay out $10k for expenses mentioned above. I report $5k in depreciation. I pay $3k in mortgage interest. I contribute $1k to my IRA.

What is my AGI? (Specifically, do utilities and repairs factor into the AGI, or are they itemized/deducted afterward?)

FWIW, these rental properties are set up as single-member LLCs ("disregarded entity"), as passive income.

Thanks so much!!

[Ashish Acharya]

Originally posted by @Paul Allen:

Welcome to BP!

If my early morning math is right...

$31K if the $3K mortgage interest is on rental properties and your IRA is traditional.

$32K if the $3K mortgage interest is on rental properties and your IRA is a Roth.

$34K if the $3K mortgage interest is on your personal residence and your IRA is traditional.

$35K if the $3K mortgage interest is on your personal residence and your IRA is a Roth.

Paul, I agree with your calculation but earned income for IRA does not include rental income. So IRA is out of the picture.

Small enough to not make any difference to him.