Hello. I'm uncertain whether I'm posting on the correct newsgroup. If I'm not,
I'd appreciate it if you'd re-direct me. I'd like to know how income from
rental property is taxed. For example, if someone rents out a part of their
house to a tenant, how is this taxed in the United States? Do you know what
percent of the rental income is taxed? Thank you.

In article ,
(Mypuprocks) wrote:

Hello. I'm uncertain whether I'm posting on the correct newsgroup. If I'm not,
I'd appreciate it if you'd re-direct me. I'd like to know how income from
rental property is taxed. For example, if someone rents out a part of their
house to a tenant, how is this taxed in the United States? Do you know what
percent of the rental income is taxed? Thank you.

search google (or your news server) for groups with the word "tax" in
it. Your bound to find one.

"Mypuprocks" wrote in message
...

Hello. I'm uncertain whether I'm posting on the correct newsgroup. If I'm
not,
I'd appreciate it if you'd re-direct me. I'd like to know how income from
rental property is taxed. For example, if someone rents out a part of
their
house to a tenant, how is this taxed in the United States? Do you know
what
percent of the rental income is taxed? Thank you.

1. It depends where you live, because there are both
federal and state income taxes, and in some places
municipal income taxes as well.
2. Generally it appears (1) rental income is offset or
reduced by rental costs (heating, paint, repairs,
etc.), then (2) net rental income is simply added to
your other income, which is taxed as a whole.
(But local conditions may vary.)

--
Don Phillipson
Carlsbad Springs
(Ottawa, Canada)

The full rent would be included in your "gross" income and taxed accordingly.

You would also be able to "deduct" a prorated amount of the expenses
(utilities, etc.) of the household. This should be done on a square foot
basis. In this situation no depreciation should be taken.


Trip



In article , says...

Hello. I'm uncertain whether I'm posting on the correct newsgroup. If I'm not,
I'd appreciate it if you'd re-direct me. I'd like to know how income from
rental property is taxed. For example, if someone rents out a part of their
house to a tenant, how is this taxed in the United States? Do you know what
percent of the rental income is taxed? Thank you.

BTW, most people wouldn't even consider reporting this type of income
on their tax return.


Trip

In article , says...

Hello. I'm uncertain whether I'm posting on the correct newsgroup. If I'm not,
I'd appreciate it if you'd re-direct me. I'd like to know how income from
rental property is taxed. For example, if someone rents out a part of their
house to a tenant, how is this taxed in the United States? Do you know what
percent of the rental income is taxed? Thank you.

(Mypuprocks) wrote in message ...
Hello. I'm uncertain whether I'm posting on the correct newsgroup. If I'm not,
I'd appreciate it if you'd re-direct me. I'd like to know how income from
rental property is taxed. For example, if someone rents out a part of their
house to a tenant, how is this taxed in the United States? Do you know what
percent of the rental income is taxed? Thank you.

The quick answer:
The net profits (if any) from such rental are taxed as general income
(i.e. grouped with wages or salary income). If there are net losses,
they may reduce general income, resulting in lower taxes. The tax
rate
varies based on total income.

A bit deeper:
Various actual expenses (mortgage interest attibutable to the rented
part of the house, insurance attributable to the rented part of the
house,
utilities, advertising, cleaning, repairs) and paper expenses
(depriciation)
are deducted from the rent payments - so the end result may
not involve any profit, and losses are generally deductible from
income
up to a limit ($20,000, unless one's income is high, at which point it
starts
reducing). If and when the property is sold, one may have to
recapture (pay taxes) on some or all of the depreciation previously
taken at a rate that is higher than the captial gains tax.

A lot deeper:
Get thee to a library. There are whole books written on this stuff.

misc.taxes.moderated is a more focused newsgroup your question.

Cheers,
-bret

TripFarmer wrote:
The full rent would be included in your "gross" income and taxed accordingly.

You would also be able to "deduct" a prorated amount of the expenses
(utilities, etc.) of the household. This should be done on a square foot
basis. In this situation no depreciation should be taken.


Rental income and expenses are put on Schedule E. The net income or
loss is then put on the front of the 1040 - can't remember the line
number.

Nancy

Simple enough....pay the hundred dollars and go to a tax accountant. That
way you get the correct answer as opposed to lots of opinions.
Simple enough............Just for fun you might want to consider what the
legal ramifications are from an insurance perspective if your "tenant" slips
on a banana peel which was sitting on the main entry floor. (or your
tenant's girlfriend slips on said banana peel....) So you might want to call
your insurance company and find out what their feeling is about your
prospective tenant.




"Mypuprocks" wrote in message
...
Hello. I'm uncertain whether I'm posting on the correct newsgroup. If I'm
not,
I'd appreciate it if you'd re-direct me. I'd like to know how income from
rental property is taxed. For example, if someone rents out a part of
their
house to a tenant, how is this taxed in the United States? Do you know
what
percent of the rental income is taxed? Thank you.