🏦 Income taxes question

[Alessandro Pascucci]

Good morning everyone,

I have a basic taxes question for you today:

Assuming my gross rent income is1000$/ month and based on accurate research I can plan a total of 500$/month of expenses (small repair; big repair; cap-ex; property management; vacancy; and all the rest of expenses can occur)

I have a total 500$/month net rent income.

Now, just for example, I have a mortgage of 200$/month. I have left 300$/month cash flow.

My question is: which amount will be the one I need to pay the income taxes?

I have 1000$ - original rent

I have 500$ - rent minus expenses (but part of this expenses ante just planned and they don’t occur every month, so for the sake of the plan we average the big expense during the years and the months)

I have 300$ - rent minus expenses minus my mortgage.

Thanks for help guys