Tax implications on new rental duplex

[Justin Demember]

A 50/50 partner and I just purchased a duplex with a conventional loan. We have a tenant in each tut came with the property and receive 1000 in rent. P&I is $200 with taxes and insurance NOT in escrow. We have no idea the implications come tax time year and are looking for any advice or tips so we can prepare. (We will be seeking an accountant soon)

Thanks !!

[Kyle Wells]

There likely won't be any taxable income once you include the depreciation of your tax basis in the property (purchase price of property plus closing costs). If you formed a partnership, any taxable income would be passed onto the partners on a Form K-1.