The $1,500 a month will be added to your gross income. Then your accountant will subtract expenses such as , real estate taxes, repairs, depreciation, etc... I would definetely talk to an accountant.

I've owned several properties both personally and via LLC. Your accountant should be able to offset most of the additional income you will be showing on your taxes.

As Dana said, tenants do not pay taxes. However, if I understand your question, you are asking whether you pay taxes on your rental income.

The answer is yes. However, you report rental income (and expenses) on schedule E of your federal 1040, and a similar schedule on the NJ income tax form.

Your tax rate will be whatever your rate is for your adjusted gross income totaling all taxable income.

However, don't forget that for your rental property you get to deduct all expenses connected with your rental business.

Taxes, utilities, association fees, parking fees, interest, DEPRECIATION, mileage, repairs, etc. This is all basic information. You should talk to a tax accountant to get the most accurate picture of what and how you would benefit (or not),

I work with rentals as well as sales. I will be glad to work for you.

I wish you the best!

Renters do not pay taxes--this is the responsibility of the property owner.