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12-18-2007, 08:45 PM
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Real Estate Sales Associate (NJ)
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Join Date: Jul 2007
Location: Central New Jersey
1,163 posts, read 1,139,639 times
Reputation: 146
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Anyone Know The Tax Rate For Landlords
At the end of your tax year when you go to pay your taxes, anyone know the "formula" used for the determination of how much you pay in taxes? Always has bugged me to find out.
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12-18-2007, 09:30 PM
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Who Do You Trust?
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Join Date: Nov 2007
Location: In My Own Little World. . .
3,213 posts, read 2,052,421 times
Reputation: 1378
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Quote:
Originally Posted by DodgeViper01
At the end of your tax year when you go to pay your taxes, anyone know the "formula" used for the determination of how much you pay in taxes? Always has bugged me to find out.
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What kind of taxes are you talking about? Income taxes? |
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12-18-2007, 11:13 PM
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Real Estate Sales Associate (NJ)
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Join Date: Jul 2007
Location: Central New Jersey
1,163 posts, read 1,139,639 times
Reputation: 146
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Yes income taxes are the proper taxes I am talking about.
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12-19-2007, 12:12 PM
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Who Do You Trust?
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Join Date: Nov 2007
Location: In My Own Little World. . .
3,213 posts, read 2,052,421 times
Reputation: 1378
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Quote:
Originally Posted by DodgeViper01
Yes income taxes are the proper taxes I am talking about.
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NJ income taxes depend on your income amount. NJ only allows deductions for property taxes, some medical expenses, and your normal exemptions for yourself and/or spouse and/or disability. After you compute your amount of gross income, you would go to the tax rate tables and depending on your filing status, you could see what you tax liability would be. The tax tables are here: www.state.nj.us/treasury/taxation. Click on "forms" then "print/download tax forms" then "gross income tax forms". On that page you can access the NJ 1040. The tax tables are in the instruction booklet for the NJ 1040, page 53. You can also access the NJ 1040 form to figure out what your gross income is. However, keep in mind these are the 2006 forms, the 2007 forms will not be available online until the beginning of 2008. |
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12-20-2007, 10:12 AM
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Phat Bastard!
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Join Date: Dec 2007
Location: NJ
1,097 posts, read 857,498 times
Reputation: 326
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I beleive income from a rental property is considered capital gains and not straight income if the property is owned by a private individual. If the property is owned by a company then it is considered as revenue and corporate taxes apply not personal income tax.
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12-20-2007, 10:47 AM
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Senior Member
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Join Date: Jan 2007
209 posts, read 355,292 times
Reputation: 51
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If this is the first time you have owned a rental property you may want to get a consultation with an accountant, as the tax situation can be a bit confusing. You can deduct any expenses to maintain your rental property against your rental revenues, but any profit over maintenance expenses, mortgage, taxes, etc is generally treated as income (not capital gains). When you sell a rental property you get a capital gain.
Seriously, though, spend a hundred dollars or two and spend an hour with an accountant. It's better than risking an IRS audit.
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