Withholding Taxes When Using Rental Income

[Tyson Hosey]

I know this topic has been covered in the forums a few times over, but I can't find the posts on it and I'm really concerned about this, so I'm going to start a new thread.

I've done all the calculations for setting aside money for repairs, vacancy etc. etc., but after all that I'm left with my net number (a.k.a. "Cash Flow"). I hear people talking about "living off the rental income" and that sounds amazing. But I should probably take a percentage out of that for paying taxes on the portion that I use, correct? Or am I only paying taxes on the gross income? Totally confused.

Side notes: I'm in the 15% tax bracket, married filing jointly, property isn't in an LLC.