I rent a property on which I have a mortgage. Am I liable for income tax on the rent?

Answer 1

Yes but only the part of it that exceeds the money you pay towards the mortgage. i.e. you can offset the mortgage payment as a "business expense".

However you will have to pay capital gains tax on the increase in the value of the property when you come to sell it.

Answer 2

Most of the previous answers are correct. You can offset most of your outgoings against your income. Another point to remember, if you co-own the property with a wife or partner, then you can split the income and costs between the two of you. This lowers your individual exposures; particularly useful if you are pensioners and on lowish incomes.

Answer 3

you will record schedule E to record your condo earnings and expenditures. the entire quantity of the lease, $750 in step with month, is your earnings. on the style you will deduct your expenditures. it is often self-explanatory. Any rate you do no longer see indexed, such by using fact the factors proprietors' affiliation dues, upload to line 18. do no longer forget approximately depreciation! Residential condo factors is depreciated over 27.5 years, at once-line. Your foundation for depreciation is the cost of the townhouse, that's composed of no longer basically the contract cost yet additionally the charges (no longer escrows) paid at ultimate, and minus a sensible quantity for land if any land possession is secure interior the acquisition. comprise additionally any capital advancements you have made to the valuables considering to procure it. Your internet earnings from the condo will pass online 17 of your 1040. I strongly propose you have a CPA practice your first schedule E for you, so as which you will comprehend the thank you to do it.

Answer 4

Yes, with costs like loan interest and repairs and maintenance and insurance deductible from the gross income figure leaving the net amount subject to income tax.

Answer 5

Yes, it's just like normal income.

Answer 6

on the rent minus costs (mortgage, maintenance)

Answer 7

I think yes, but double check with your friendly accountant or Inland Revenue advisor. LOL

Answer 8

taking into account all expenditure etc deducted, whatever nett profit you make will be taxed by adding on to other revenue you receive IE, PAYE, self-employment, dividends, interest etc!!