if i rent out my house,what kind of taxes will i have to pay?

Answer 1

You will have to pay the same property taxes you already are responsible for paying plus income taxes on the rental income.

Answer 2

2

Answer 3

The property tax payable for a vacant house or a self occupied house is always less than the house which has been rented out. In Delhi the property tax for a rented house is double the normal amount.

Hopwever, this property tax paid is deductible from the rent income liable for Income Tax. The Rent income-minus the taxes paid divided by 2/3 is the amount liable for Income Tax.

Other than this , there are no other taxes as of now.

Answer 4

You may have a higher property tax because the home will no longer qualify for a homestead credit if it's not your primary resindence. I own 3 homes. One is worth about $20,000 more than the home I live in and it is rented but the taxes are almost doubled just because I don't live in it. I also have to pay a local fee for a rental liscense every year.

These fees and taxes will vary from one area to another. I'm in Michigan. Our state is suffering from a terrible economy and to make things a little worse the state is struggling to cover all of there expenses so they're raising all kinds of fees to cover it.

Answer 5

When renting out your home you add the taxes in to the payment amount in other words break it down to what the taxes are per month add to what your payment is and extra for repairs you may have to make while renting to others like if the water heater breaks or if the a/c needs replaced it is up to you as a landlord to do this .
Depends on the state you live in ,be sure you get the insurance you need for renters .

Answer 6

Several, depending on how you structure the transaction.

One suggestion you might try doing. Try renting out the house on a "lease purchase plan" in which the person renting is making payments as if he was going to buy the property, and the payments are for an option to buy but is not required to purchase. My understanding is in such a case, until he moves out or exercises the option the payments don't count as income. Check to be sure.

Answer 7

rent housekind taxes pay

Answer 8

The amount of taxes you pay depends on whether you make any profit from it. If you are unfortunate to suffer losses (massive repairs, paid more mortgage than what you collected in rent, etc.) then those losses can offset your income from other sources like jobs, retirement pensions, etc.

When you rent out a single house you'll be filling out a Schedule-E when you file your taxes. Basically all the rent you collect is potential income, once you account for all of your relates expenses (repairs, mortgage, travel, etc.) that will go on your 1040 as income/loss.

These forms are from last year but is will give you a good idea of what you need to keep track of.

Schedule-E Form (2006)
http://www.irs.gov/pub/irs-pdf/f1040se.pdf

Schedule-E Instructions (2006)
http://www.irs.gov/pub/irs-pdf/i1040se.pdf

Keep detailed written records and related reciepts. The way I see it the IRS is more likely to audit people that have forms with a lot of deductable expenses (Schedule-C, Schedule-E, etc.). There are a lot of areas subject to abuse on these forms. If any of your expenses seem too outlandish in their opinion, they may choose to audit, and in that case you'll have to be able to prove your expeneses to the IRS or else you have to pay more taxes, plus penalties and interest.

SAME PROPERTY RENTALS
Things can get a bit tricky if you are renting a house that is on the same property as your primary residence. Like a small guest house in the back yard, or a Duplex/Multiplex where there is a single building that has 2 or more completely SEPARATE AND INDIVIDUAL homes and you happen to live in one of them.

In these cases you'll have to keep even more detailed records, plus you have to know the exact square footage for each home including your primary residence, because you'll have to prorate any shared expense (usually the mortgage, but could also include utilities if there is only one meter that feeds all homes) to the correct forms.

For example if you own a single story duplex with a mirrored floor plan (i.e. the building is split down the middle with a common wall and each home has identical square footage, just opposite layouts) then any proration of mortage or shared utilities would be a simple 50% split since both properties have identicle square footage, but you still have to track specific expenses (like repairs) individually and apply them to each home appropriately.

If its a small 2,000 sq foot guest home in the back yard that your renting out and your main home is 6,000 sq feet, then 25% of your mortgage would count as an expense on your Schedule-E and the other 75% would go on your Schedule-A when you itemize. Normally your water and power bills cannot be deducted, but in this case if the guest house draws off power and water from the main house then 25% of those bills can be counted as part of the rental's expenses on the Schedule-E.

In these cases I'd advise keeping track of everything with detailed records (including dates, bills, recipts, check stubs, etc.) then having a tax professional or a friend with more experience with rental properties help to make sure that each items is properly allocated to the rental property.

Answer 9

Income taxes on the rent received: And ordinarily you may deduct (meals, hotels, etc, incurred in travelling to it for checking on it, travel to it to collect, your own payment, your taxes, it's a beautiful thing. And, for two years you won;t lose your homestead status..at least in Texas..

Answer 10

The same taxes you're paying already plus you have to report rental income. The upside is that you can depreciate your property and expense repairs&maintenance, so it might be a win-win situation for you.

Answer 11

renting a houes is consider a buisness and i think you are en titled to pay property tax and or general consumtion tax.