rental income : ezLandlordForms

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Gayle S

started a topic over 11 years ago

I have 2 rental properties. With the payments on the rental property almost as much as the rent I about break even but I have to claim the rent as income so the income tax is killing me. Is there some way to defer the taxes? It seems like I am paying Income tax on money that I do not receive. The properties are both single dwellings and in Washington State. Any suggestions would be appreciated.

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Luis M

said over 11 years ago

I'm sorry, but I don't think there is a way to defer the taxes.

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Calvin J

said over 10 years ago

Financial advisor or Chartered Accountant can suggest you better in this matter. You should consult them and discuss about all the problems you are facing related to income tax.

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Julie G

said over 10 years ago

Rental properties generally are done on their own schedule, Schedule E Supplemental Income and Loss, which shows all expenses and all income for each income property, then only the Net is applied to over all taxes. If you are not doing it this way, you really should see an accountant or CPA because you should only pay Federal Income tax on the net income.

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Daryl J

said over 10 years ago

You only owe taxes on the actual profit from rental property. You must report the income but it is up to you to report the expenses associated with the income. If you did not do that you should consider filing amended returns to claim refunds for the excess amounts paid in prior years. You should hurry as there is a statute of limitation for you to do so. If you do not know how to do so on your own contact a local tax preparer or accountant and they can take care of it for you.

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Alexis C

said about 10 years ago

I don't know about it.