How is rental income taxed?
In my planning for retirement, I estimate my family annual expenses to be about 100K. I want to know how much do I need to clear in rental income to be able to cover that.
Obviously, the depreciation should make the taxable rental income question better, but to keep things simple, we’ll not consider the depreciation, just all the deductible expenses (mortgage interest, taxes, insurance, repairs, materials, management, any and all other expense rental related). Also, we'll assume there is no other income (no job, no interest on savings, no investments) other than rental income, and I need to clear 100K after all the deductible expenses (mortgage interest, property taxes, insurance, repairs, materials, management, any and all other expense rental related) and TAXES.
Or, to reverse the net into taxable gross, how much do we need to clear in net rental income, so that after paying taxes on it, will have 100K free and clear?
