Income taxes with no other income.

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Income taxes with no other income.

Yengkong Sayaovong
Member since 2019 · 33 posts · 11 votes

If I don't have a job income but have income from my rental homes. Would I still be able to do taxes? Or would I have to get a business ID in order to claim taxes if I want to do rentals full time and not work anymore?

I'm in school right now and eventually will leave my job come 2020 cause my class hours doesn't work with my job hours anymore.

I only have 1 duplex and 1 single house right now.

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  • Steve Vaughan
    Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    7y
    Originally posted by @Yengkong Sayaovong:

    If I don't have a job income but have income from my rental homes. Would I still be able to do taxes? Or would I have to get a business ID in order to claim taxes if I want to do rentals full time and not work anymore?

    I only have 1 duplex and 1 single house right now.

    Nope, you don't need a business ID.  If you own the rentals in your own name, you will use a Schedule E as part of your regular 1040.  TurboTax Premium (about $65) works well for me, but it's garbage in, garbage out. It will ask you the questions, but you need to know the answers and what values to input. 

    With any DIY tax  software you will need to track and account for the income and expenses,  knowing the difference between a repair and capital improvement. Also need to know your purchase prices, dates and land values to do proper building depreciation. Simple with just a few rentals, but not necessarily easy.

    I would recommend someone brand new at least consult with a RE-focused tax pro. BP has many and they don't necessarily need to be local to you.  

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    7y
    Originally posted by @Yengkong Sayaovong:

    If I don't have a job income but have income from my rental homes. Would I still be able to do taxes? Or would I have to get a business ID in order to claim taxes if I want to do rentals full time and not work anymore?

    I'm in school right now and eventually will leave my job come 2020 cause my class hours doesn't work with my job hours anymore.

    I only have 1 duplex and 1 single house right now.

    Agreed with Steve, you will still report taxes under you SSN. There is a separate form that will report your Rental activity. So, you will still file 1040 with that schedule.  

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