Tax question on rental income

[Steve S.]

I'm trying to get a better understanding of how much of my rental profit I may be able to keep. 

If my AGI is $150,000 and my rental profit is $24,000 for the year, after paying the PITI and expenses, in a rough estimate, how much can I keep

And how much is the government going to take?

[Jon Holdman]

Principal is not deductible.  That's just a transfer from one account (your bank account) to another (equity in the property).  Depreciation is, though.  That's 1/27.5 of the value of improvements each year.  Land doesn't depreciate.  Taxable income from a rental is total rent and any other fees collected (e.g., utilities, late fees) less:

1. actual expense (utilities, insurance, taxes, legal fees, accounting fees, repairs)
2. interest (just interest, not principal)
3. depreciation

Whatever is left is then taxed at your marginal rate.  Note that capital items (e.g., new flooring or appliances) as well as any money you spend after you buy a new property until its rent ready is not immediately expensable.  Those expenditures must be depreciated on the appropriate schedule.  Further note that depreciation taken (or allowed, if you take less than is allowed), decreases your basis which increases the gain when you sell.

I highly recommending getting an accountant who's familiar with real estate.  Especially if you're making a pretty good taxable income like you describe.