Updated about 7 years ago on .
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Taxes for Rental Income
This year, I purchased my first three rental properties, have a question about the taxes on that income.
With this new source of income, do I need to be contributing to the taxes due throughout the year similar to how a w-4 takes out money? Or can I just pay whatever tax liability I have when I have that calculated after my taxes have been filed? I do have a “safety” stockpile account where I store money for these purposes: taxes, returned security deposits, etc.
I have a w-2 job and am having taxes taken out for that. I believe that I am withholding more then will actually be needed strictly for w-2 income. If there is some withholding remaining, will that go to rental property tax liability? Or are those two kept separate?