Income Tax in CA

[Brandon Cooper]

Question number 1 Here in California our income tax is pretty high, so I am curious what investors do with their income. Let's say I have a cash flow of 10k a year and my income tax rate is 25% Would/should I set aside that $2500 each year to pay my income tax? What do you do? Obviously this is a very important calculation that greatly affects NOI.

Question number 2 I am a resident of California, but I own real estate in a state that does not have income tax. How is this handled? I assume tax man still gets his/her income tax from me. Thanks