Do you pay taxes at the end of the year on rental income? Or is it considered non-taxable income?
personally, no. i do my taxes 10 months past the end of the year!!
i have enough depreciation to offset the cashflow and also part of
my regular income. every situation is different.
Rental income is taxed at your normal tax rate. You can subtract out depreciation (non-cash expense) and other allowable expenses and you’re taxed on the end figure. It also has the advantage of not being subject to self-employment tax since it’s passive income.
I am thinking that the last time I was on the IRS.gov web site when I was reading about what you do and do not pay taxes on it simply said YES YOU PAY TAX ON EVERYTHING!!!