Rentals in Bronx>Question Details

Samsam, Home Seller in Bronx, NY

Do you pay tax on rental income if you charge less than mortgage costs?

Asked by Samsam, Bronx, NY Thu Apr 11, 2013

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Samsam,

This is more a tax question, please speak to your CPA or Tax Consultant. If your claiming your rental income on your personal Tax Returns and doing a Schedule E. It now becomes part of your income, if your gaining a profit! Yes then it becomes taxable. You still have to include your mortgage Interest in your taxes. If you have a loss them its not taxable and gives you a deduction from your AGI ( Adjusted Gross Income ). I have been doing taxes as long as I have been doing Realestate.

If you need further assistance please give me a call at 646-957-4648 or call my Tax office at 718-829-3900, ask for my partner Richard Rodriguez.

Hope this helps.

Millie Valentin
Exit Realty Search
3928 E. Tremont Avenue
Bronx, NY 10465
http://www.ExitRealtySearch.com
Web Reference: http://throgsneckhomes.com
0 votes Thank Flag Link Sat Apr 13, 2013
Good morning Sam,

As many others have mentioned before me, that would be a great question to ask your Certified Public Accountant or Tax specialist. I am actually a colleague of Millie Valentin's and she is great at what she does and truly loves and cares for her business and assisting her clients. She may have further information to assist you with regards to your concerns.

Bryant Mero
EXIT Realty Search
917- 327-7870
Bryant@exitrealtysearch.com
Certified Buyers Representative

If you thought my answer was helpful please give me a "Thumbs-Up" or "Best Answer"

Good luck!
Web Reference: http://bryantmero.com/
1 vote Thank Flag Link Thu Sep 26, 2013
Wouldn't it be wonderful if Corporations paid tax on GROSS INCOME instead of NET?
You probably are allowed deductions.
0 votes Thank Flag Link Sat Apr 13, 2013
Hey Sam,

Almost all income is taxable but if the rental income is less then the mortgage payment, then it counts as a lost in profit. As mentioned by all parties below, discuss with a tax accountant in reference to deductions and what exact taxes you'll pay on. Good luck!

John Lajara
REALTOR®/Notary Public
Certified Buyer Representative® (CBR)
Certified Distressed Property Expert® (CDPE) "Saving families from foreclosure"
Cell: 917-848-4655
Fax: 917-522-9638
Website: http://www.JohnsRealtySuccess.com
E-mail Address: john25lajara@gmail.com
EXIT REALTY SEARCH | 3928 E. Tremont Ave | Bronx | NY | 10465

Like me on Facebook for lifestyle info in the highly desirable Throgs Neck (Bronx, NY)
http://www.facebook.com/throgsneck

Visit me on Trulia & Zillow!
http://www.trulia.com/profile/johnlajara
&
http://www.zillow.com/profile/theexitproject
0 votes Thank Flag Link Sat Apr 13, 2013
Hey Sam,

Almost all income is taxable but if it's less then the mortgage payment , then it's lost in profit. As mentioned by all parties below, discuss with a tax accountant in reference to deductions and what exact taxes you'll pay on. Good luck!

John Lajara
REALTOR®/Notary Public
Certified Buyer Representative® (CBR)
Certified Distressed Property Expert® (CDPE) "Saving families from foreclosure"
Cell: 917-848-4655
Fax: 917-522-9638
Website: http://www.JohnsRealtySuccess.com
E-mail Address: john25lajara@gmail.com
EXIT REALTY SEARCH | 3928 E. Tremont Ave | Bronx | NY | 10465

Like me on Facebook for lifestyle info in the highly desirable Throgs Neck (Bronx, NY)
http://www.facebook.com/throgsneck

Visit me on Trulia & Zillow!
http://www.trulia.com/profile/johnlajara
&
http://www.zillow.com/profile/theexitproject
0 votes Thank Flag Link Sat Apr 13, 2013
Your tax professional and or tax attorney can better advise, therefore consider a consultation; don't simply rely on online information....
0 votes Thank Flag Link Thu Apr 11, 2013
Hi Samsam

You must declare all income. But whether you pay or have enough deductions to get a refund is between you and your accountant.

All the best,

​Joe Greene
Broker/Owner
WEICHERT, REALTORS - House & Home
609 Kappock Street Suite 1A Bronx, NY 10463

joegreene@weichert.com
http://www.WeichertWorks4U.com

(718) 432-5000 (Office)
(917) 974-2600 (Cell)
0 votes Thank Flag Link Thu Apr 11, 2013
This is definitely a question for your tax preparer. But I can tell you that If your annual rental income is less than your expenses (including mortgage costs), you'll likely report the income as a loss. but consult your CPA or accountant.

If my response was helpful, consider clicking BEST ANSWER!

Javier Meneses
Senior Loan Officer
NMLS #23130
STERLING NATIONAL BANK
310 Crossways Park Drive
Woodbury, NY 11797
jmeneses@snb.com
(516) 606-9648
0 votes Thank Flag Link Thu Apr 11, 2013
That is a tax question for a CPA or other tax professional.
0 votes Thank Flag Link Thu Apr 11, 2013
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