How to claculate taxes on a new rental?
Hi everybody!
I am thinking of buying a rental in Maricopa county.
Trying to figure out how rents will be taxed?
Rent is 1K per month, so 12K per year.
Property taxes are 2K/ year
How am I gonna be taxed on the rents that I receive? Is this 12K in rents that I will receive from the tenant will be taxed like an ordinary income? (I am in 30% tax bracket, so approximately 4K I will have to pay in taxes then for this rental In addition to the 2K property taxes? )
Thank you!