I have inherited 5 homes. I would really like if someone knowledgeable could tell me at what rate I would be taxed yearly if I were to rent them out ( which I am soon ). If it helps, I am single and make about 100k a year residing in NM, USA. Yahoo answers is the best and this is why I came here first. = )
Thanks in advance.
2007-03-11 03:42:51 · 4 answers · asked by david 1 in Business & Finance ➔ Taxes ➔ United States
Rental Income is taxed as ordinary income.
The rents you receive is offset by depreciating the houses plus any other expenses so you will be taxed on much less than you receive each year.
2007-03-11 05:34:11 · answer #1 · answered by Wayne Z 7 · 1⤊ 0⤋
With income of $100K, single, you are probably in a 28% bracket, so that's what you'd be taxed if you rent out the houses. That would be figured on your net income from the rental properties - you would deduct associated expenses such as insurance and repairs from the rental income before figuring the tax.
This is just the federal tax - NM would probably collect some taxes also on your rental profit.
2007-03-11 13:07:19 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
What do you think Judy? I think David should sell the homes and put the money in investments and pay a lower rate of interest on the income !!
2007-03-14 00:47:16 · answer #3 · answered by musicman 5 · 0⤊ 0⤋
tax is progressive. check the irs circular...it has a website. have fun.
2007-03-11 10:52:55 · answer #4 · answered by McDreamy 4 · 0⤊ 1⤋