How does a landlord get paid?

[Freeman Schultz]

How does a landlord get paid? Do they get paid a salary? What are the tax liabilites?

[Bob Norton]

@Freeman Schultz A landlord's income is the rent he/she collects, minus the related expenses he/she pays out.  They get to keep whatever is left over.  From that amount, they subtract depreciation on the property to arrive at their taxable income.  So, depreciation shelters some of the cash flow from taxation.  Rental income is passive income, so the landlord is only taxed at his regular income tax rate.  If he/she pays him/herself an actual "salary", then he/she will also pay an additional self-employment tax.  There is no reason a landlord must pay him/herself a salary.