How is VT STR income tax calculated?

[Anna Batchelor]

I'm looking for some help understanding how my income from a VT STR is going to be calculated. I'm anticipating a 30k gross and 10k net income after expenses. Does the gross or net income get taxed? Since I'm only MAKING the 10k after mortgage, property tax, etc I'd assume only the 12k would be taxed but I want to make sure. Anyone more familiar with how this works?