if so, how much percentage, is it the same rate as income tax
2006-08-15 09:42:22 · 15 answers · asked by button mushroom 3 in Home & Garden ➔ Other - Home & Garden
Yes you do, not sure about the percentage though. Probably at the same rate as if you had two jobs.
2006-08-15 09:47:42 · answer #1 · answered by CHARLOTTE B 3 · 0⤊ 0⤋
You are still responsible for the property tax as well as homeowners insurance - remind your tenant's to get renters insurance (the home owners insurance will cover the HOUSE not the possessions - make sure your insurance people know you do not want to cover the possessions - it reduces your rate).
Then you claim the income on your taxes at the end of the year. ALSO, there are great tax breaks for this situation - such as when you improve the premise you can take a large percentage of the cost of improvements off your taxes.
As this point you would want to visit H & R block to get some real tax advice and tips for legally saving money.
This is a GREAT way to make money - real estate is sucha great investment - that is how Donald Trump got his start!
2006-08-15 16:51:42 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Yes you do, you need to declare the income to the tax office.. Any repairs (i.e. repairing broken appliances etc) will also be taken into consideration but any improvements to the property will not (i.e. extensions). If you move overseas you can apply to the tax office to receive the rent without paying tax. Best advice is to get good accountant who can advise you how best to do it and pay least amount of tax!
2006-08-15 16:51:06 · answer #3 · answered by Jude R 2 · 0⤊ 0⤋
Do you mean the property tax? If so, yes because you are the owner of the house. That is a cost you should include when deciding the amount of rent you will charge.
2006-08-15 16:48:22 · answer #4 · answered by BritLdy 5 · 0⤊ 0⤋
Actually,the extra income will have to be reported on your income tax. If the annual amount along with your usual salary go past $36,000.00,then it could push you into another tax bracket.
2006-08-15 16:50:22 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I think this is something you should pass over to the lodgers. I you still live there - yes you still have to pay council tax, but if you don't then it should not be your responsibility. Get in contact with Inland Revenue... Good Luck, www.jimwillfixit.co.uk
2006-08-15 16:48:25 · answer #6 · answered by moses4u 1 · 0⤊ 0⤋
Where I'm from, you don't pay any tax, you just have a deal with the guy you rent it too.
2006-08-15 16:48:03 · answer #7 · answered by weaponspervert 2 · 0⤊ 0⤋
It's taxed as income. However, you get lots of deductions as well.
More info:
http://www.wwwebtax.com/income/rental_income.htm
2006-08-15 16:48:16 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I was looking into this. If you just have one house, then no. But if you rent out more than one house it starts to become a business and then you probably would have to.
So, one, no. More than one, probably!
2006-08-15 16:47:53 · answer #9 · answered by Whitelord 2 · 0⤊ 0⤋
I think you pay council tax just like anyone else.
2006-08-15 16:48:02 · answer #10 · answered by Anonymous · 0⤊ 0⤋