Basic Self Employed Tax Questions

[David Zheng]

Hey Guys,

I'm about to go the self employed route and need a little help with how do setup my personal income tax

so tell me if I'm going about this right....

Heres just a simple example

1. 5k rental income- 2k expenses - 1k (salary I pay myself) = 2k net profit - 3k (depreciation) = -1k loss for loss on rental

2. 1k salary * 15.3% (med/SS tax) = 153 paid in personal taxes so far

3. deduct health insurance/ 7.65% (half of med/SStax)  from personal income

4. carry the 1k business loss to my 1k salary

Essentially not paying rental income taxes and also basically just paying 7.65% of taxes on the personal salary I pay myself.

obviously just an example but just wondering if Im looking at this the right way?