Rental Income + Taxes + How will this come out on taxes ?

[Michael Dunn]

Rental Income + Taxes + How will this come out on taxes ?

I need some help and confirmation please, given as how have the year is now over and 2017 Tax season isn't all that far away . This year will be the first year that I will have had 2 Rental Properties Income received from both for the year will be about $14,000
My Questions please are:
1. will this $14,000 from Rental Income be counted as actual Income I earned/Received to Lenders ? Meaning ............ If this will use this $14,000 as my actual Income, then I can then add this $14,000 with what I earn from my Job, and this will therefore Increase my Income for 2017 by an extra $14,000 yes ?
  2. Regarding paying Taxes on the $14,000 ............. since this will all be from Rental Income , what will I be able to write off ( as a whole ) ? And will I have to most likely pay Taxes on the full $14,000 , or after Deductions and Writeoffs, will I likely only have to pay Taxes on say ............. 1/3 of this $14,000 as a ( most likely scenario ) ?
3. What is the Percentage that you have to pay on Rental Income .......... is it a set/standard % or does it vary dependent upon the Individual ?
Thank you so much for any and all help 

[Steve K.]

@Michael Dunn , No, you don't pay tax on the full amount of rent collected. You pay tax on the "profit" each year, as defined by the IRS.

if your 'gross' rent is $14,000 , you get to deduct many expenses from that before you (and your accountant, if you use one) calculate the "taxable income".

Deductions include:

• all of the interest you paid on mortgage(s) on the properties (but not the principal repayment portion of the loan)
• the cost of property taxes
• the cost of insurance
• maintenance expenses
• fee of a property manager, if you pay one
• and "depreciation" (defined as the cost of the building (excluding the land), divided over 27.5 years. So, if you had a $60,000 property, and you view that the land is worth $15,000 you get to consider depreciation on the $45,000 allocated to the building. $1636 per year or so, deducted.

Some landlords find that these deductions allow them to pay tax on just a fraction of the rent received. (A few even say that they have a taxable "loss" at the end of the year, based on the depreciation calculation and how much interest, etc.)

Good luck