A rental property can generate “taxable losses” that can be used to reduce your normal salary income.
If you’re renting out your personal residence or second home, you’re a landlord. You’ll have to report the rental property on your federal income taxes.
If you’re an investment property owner or are thinking about becoming a landlord, find out how the depreciation expense could help you maximize your tax savings.
Unlike deductions and exemptions, which lower the amount of income you are taxed on, credits directly reduce the amount of taxes you owe.
As part of LearnVest’s “Money Mic” series, one woman opens up about how the cost of living in New York City — combined with a 40 percent income tax rate — is preventing her and her husband from achieving the “American Dream.”
Taking a look at the basics to understanding rental properties and federal incomes taxes.