Expense And Income Set Up Of 1st Rental

[Patrick Q.]

Hello All,

I am just getting started with investing in real estate and want to make moves to purchase my first rental property.

Assuming I do not establish an LLC or other business entity to 'own' the property the following are my questions;

-How is it handled in terms of taxes. Does it appear on my personal taxes (both income and expenditure)?

-Should I set up a separate bank account to receive rent and pay expenses and keep all financial events completely separate to any other financial things in my life?

-Are the proceeds of the rental taxed at the same rate as W2 income or a lower passive income rate given that there is no business entity set up?

-Should I set up a business entity with which to purchase the property? 

Looking forward to hearing any advice that you guys can offer.

P.S.: Any recommendations for study/reading material on the topic will also be graciously received.

Pajo.