Tax and Legal ConsiderationsUnderstand the tax implications and legal responsibilities associated with rental income.

The Big plus is the tax deductions they will be able to take as well!!! 

And must be pretty significant unreported income if it would have caused $45k in state tax liability.You advised your client to wait past the expiration of state statute.

Plus with no state income tax, cheap insurance, and very low property taxes, I’m probably starting $20k ahead of most people, and that’s a tax free $20k.).

(As AZ and your current state will fight over who gets to tax your gains with the federal government.)I have to throw most of the shade on your horrible tax guy/cpa who didn’t tell you renting it out was a $50-$100k mistake. 

Once your emergency account has a reasonable amount in it, whatever that means to you, you might want to think about steering that payroll money into the investment savings account from each pay check and leave the emergency account money as is.

Forming an LLC for your rental property can offer liability protection, but no real tax benefit.

@Sung Yu the above posts are right on the money. 

I buy real estate but I carry debt which is actually tax deductible, my money works for me.

I use apartments.com, so the money didn't end up in my account until 1/6/25.Is this considered income for 2024 or 2025?