All Forum Posts by: Josh Corby

Do you deduct the amount of mortgage principle you paid from your rental income? For example, if you make $15,000 GROSS rental income, but you paid $5,000 of the mortgage principle for the year, is your net income $15,000 or $10,000. I know you can deduct other expenses such as mortgage interest, repairs, and operating expenses. Would the mortgage principle be considered an operating expense and therefore deducted as such? Thank you.

Hey Guys, quick question regarding the taxes I will pay on wholesale fees. 

I plan to have a separate SMLLC for my wholesale business. This LLC will be taxed as a sole proprietorship starting out. What are all the tax rates I will have to pay on these wholesale fees? Would this be considered a capital gain and therefore taxed as such? Will I just have to pay Self-Employment tax and Federal Income tax?

Thank you guys so much!

Gotcha. So I would only be liable for the regular income tax? Also, would I qualify for the 20% QBI deduction?

Hey Guys, I have a couple of questions regarding taxes on the rental income I receive. First off, I'm investing in Florida, so there is no state income tax. I list all the questions I have below and would really appreciate it if anyone, preferably a tax professional, can give me a better understanding on these topics. 

1) Does rental income get hit with self-employment tax if I hold them in a pass through entity? 

2) What are all the taxes (with rates) I would have to pay in regards to holding all my properties in a single-member llc (disregarded entity)? Could you please provide an example?

Thank you guys so much for the help!

Hey guys! Can someone provide a breakdown off all the expenses involved with managing a rental property. I understand the basic expenses such as PITI. However, I'm struggling when accounting for maintenance costs and other miscellaneous costs and what percentage of the rent I should budget for each. Thank you guys, I really appreciate it!

One more question, is self-employment tax only applied to your draws? Also, Single member LLC members pay BOTH income tax and self employment tax correct? Sorry, I' fairly new to corporate structure.

Are you taxed on the money that you leave in the LLC's bank account? AKA the money that you don't draw out.

Do you have to record a lease agreement just like you record a deed? Or is a lease agreement a private document between the landlord and the tenant?

I'm planning on doing a seller finance deal. I've never actually closed on a house so bare with me. After getting a home inspection, do I have to pay that party immediately or do I pay that cost on the actual closing day? 

@Brenden Mitchum

I'm not currently doing a creative deal but i have a question that has been driving me crazy. How would you actually go about paying the seller's mortgage in a sub2 deal? Would you use ACH payments? If so, how does that work? 

Also, i have a question on investing in rentals. Are you taxed on the monthly cash flow you receive? If so, should I be setting aside a part of that cash flow per unit to pay those taxes at the end of the tax year?

Once again, thank you so much!