Question about rental income. How do I go about pay taxes for the rental income?
Thank you in advanced
Your question seems a little vague but I'll see if I can help. Income tax is payed on the profits you make. If your small, you can wait until the end of the year when you have your tax returns prepared and then send Uncle Sam a check. With rentals it is usually pretty minimal because of all the deductions and depreciation. The most important part is to maintain good records. I would start a separate business account that you can run everything through and also use a free on-line accounting program like Wave to keep your expenses organized by property.
When you file your regular taxes, make sure you take all the deductions that you are allowed (management, maintenance, taxes, utilities, repairs, etc.), and then you will have a net income amount. Add this to your W2 income to get a total gross income. It's taxed as regular income, so any refund you may have gotten from your W2 income, may be offset by your tax liability from rental property.
Rental income is reported on the 1040 Schedule E. Read about it here.
@Steve R. Thank you for your insight
@Ray Harrell Thank you
@Nathan G. Thank you for the great article