Rental Income Taxes
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Rental Income Taxes (by Michael Roberts [CA]) May 12, 2022 8:00 PM
       Rental Income Taxes (by plenty [MO]) May 12, 2022 8:17 PM
       Rental Income Taxes (by Robin [WI]) May 12, 2022 9:08 PM
       Rental Income Taxes (by Dee Ann [WI]) May 13, 2022 12:47 AM
       Rental Income Taxes (by Marv [IL]) May 13, 2022 8:24 AM
       Rental Income Taxes (by RB [TN]) May 13, 2022 9:12 AM
       Rental Income Taxes (by S i d [MO]) May 13, 2022 10:11 AM
       Rental Income Taxes (by Jim in O C [CA]) May 13, 2022 10:22 AM
       Rental Income Taxes (by Kim [TX]) May 13, 2022 1:57 PM

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Rental Income Taxes (by Michael Roberts [CA]) Posted on: May 12, 2022 8:00 PM
Message:

I'm a fairly new landlord in CA.

and I haven't filed my taxes for this year yet.

The reason is because right before April 15, I found out that there might be a different way to file that might save me some tax money. I need help from someone who can guide me in the right direction. I have 1/3rd of an acre with 4 rental units on it. I live in one of them. So with the 3 other rentals, I use the rental income as my sole income. 61yrs old and I don't know if I file this as 1)Retirement Income 2)Self Employed or 3)Investment Income. I understand that these are all taxed differently and I need to know which is the best way to go that I pay the least tax on. --70.158.xxx.xx




Rental Income Taxes (by plenty [MO]) Posted on: May 12, 2022 8:17 PM
Message:

I would ask several tax preparers in my area for guidance. That's the best route. --172.56.xx.xxx




Rental Income Taxes (by Robin [WI]) Posted on: May 12, 2022 9:08 PM
Message:

I'm not a tax preparer, but I don't think the IRS differentiates on the basis of age. Rental income is passive income and reported on Schedule E.

You could choose to "pay" yourself a management fee, but it needs to be "reasonable and customary". This means no more than 10% of gross rents. But wait! Now you have to pay self-employment tax of 15%, as well as all the other federal, state, and local taxes.

I've never heard the term "retirement income." But yes, talk to a CPA. It's after April 15th, so you might actually find one that will pick up the phone! --172.58.xxx.x




Rental Income Taxes (by Dee Ann [WI]) Posted on: May 13, 2022 12:47 AM
Message:

Michael, are these rentals single family or ? When you talk with a tax preparer, depending on how much time you spend providing services to your tenants (at least 750 hours?) you may qualify for the small business 20% deduction, known as QBI/"Safe Harbour" for real estate. Ask about it to determine if you qualify as that is one way to reduce your taxes..

--75.11.xx.xx




Rental Income Taxes (by Marv [IL]) Posted on: May 13, 2022 8:24 AM
Message:

Rentals are investment income. --67.184.xxx.xxx




Rental Income Taxes (by RB [TN]) Posted on: May 13, 2022 9:12 AM
Message:

Welcome to the Jungle ! --24.183.xxx.xxx




Rental Income Taxes (by S i d [MO]) Posted on: May 13, 2022 10:11 AM
Message:

Robin is correct. Age doesn't affect this at all. Rental property income paid to an owner is always considered passive investment income regardless if you self-manage or hire a property manager.

The good news is you don't pay FICA/Medicare tax on rental property income, only Federal & State (if applicable) income tax.

The bad news is fees and penalties are already adding up since this was supposed to be done almost a month ago. It sounds like your return will be simple enough to possibly spend less than $200 and have a CPA get it done for you next week. Get it done pronto! --184.4.xx.xx




Rental Income Taxes (by Jim in O C [CA]) Posted on: May 13, 2022 10:22 AM
Message:

Find a CPA or an EA (enrolled agent) and have them do your taxes. When I first started in 1970 I used a bookkeeper and got audited. There are depreciation schedules which need to be correct from the start. --99.23.xxx.x




Rental Income Taxes (by Kim [TX]) Posted on: May 13, 2022 1:57 PM
Message:

The only difference your age will make is that you can earn any amount on passive income and not pay tax on your SS benefits (I think...just read this yesterday)! --23.30.xx.xxx



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