WA Rental Property Income Taxable?

Question

Hi Everyone,

I am currently creating invoices for a commercial rental property. Is WA states rental income taxable? (i.e. should I charge tenants the tax?)

Thank you for all of your help.

Best Wishes,

Sammie

Natalie Kolodij · Answer

Oh Boy.

A real estate forum is not the place to do research for how to handle your client's accounting.

I would call the WA DOR and spend time on the website you'll find all of the answers there.

Basit Siddiqi · Answer

@Samantha FairbairnWashington does not have a state income tax. However, they do have a B&O tax(Business & Occupation).This is a tax on gross receipts instead of net income.You should do research if the rental income from commercial rental property is subject to the B&O tax.

Simon W. · Answer

@Marcia Maynard the commercial side is still the same, no rental taxes.

At the end of the day, it is the Net Income that is being used for tax purposes.

Marcia Maynard · Answer

Contact the Washington State Department of Revenue for clarification and discuss the matter with your partners at your firm.

Washington State has no income tax, but there are other taxes that may be applicable.

I don't deal in commercial property, but for residential rental property there is no state tax on rental income in Washington State. However, rental income would be reported on the federal tax return on schedule E. The owner pays the tax, not the tenant.

Samantha Fairbairn · Answer

Someone elses. I am working towards owning my own.

Simon W. · Answer

Are you doing the accounting for your own properties or for someone else?

Samantha Fairbairn · Answer

Hi thank you.

Rental properties in WA are a bit new to me, and just needed this clarification.

Thank you very much :)

Simon W. · Answer

As an Accountant, you do not charge tenants tax.

WA Rental Property Income Taxable?

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