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Updated almost 8 years ago,
3 Real Estate / Tax questions I need some help in understanding
1. How does me Making $10,000 a year from Rent from one Rental property , come into play , via Taxes on this $10,000 ?
Can i keep all $10,000 of this as Pure profit and Pay no taxes on it via Writing off certain things ( Taxes, Interest, Insurance and Depreciation ) ??
But if I do this , and write off all of this , how then would this " Look " on my taxes, meaning...... wil it show me as taking a " Loss " on this Rental ?
I am trying to MAKE SURE I show this $10,000 ( or at Least $7,000 of it ) as Earned income / that it gets Included in the Total of my Gross Income for the year ( along with the Income I earn from my Job Job )
I am trying to MAKE SURE that when a Lender goes and looks at my taxes, that they DON"t see a " Loss " on this Rental , and thus they aren't able to use this $10,00 ( at least $7,000 ) in my Overall Income ( Gross ) total , for when then run the Numbers to determine how much Note ( PITI ) I can afford/Qualify for , as well as when they figure out what my DTI calculation # comes out to
2. If I started to collect Rent on one of my Rentals in February ,
and then come September I go to try and get a Loan for another Rental ....... Would a Lender use this 7 months of Rent I have collected , as Actual Earned Income I have made , and thus they'd add it in to my overall GROSS income for the year ?
3. If you start renting a Property in October , do you have to factor in and file all the Rent you have received for that Years Taxes ?
Thank you so much for any and all help