Rental Income Tax (is there any in California?) (mortgage, mortgage, percentage)

[WTBWestside]

This might be a stupid question, but in California, is taxes collected on Rental income/profit?

Just wondering because if you're breaking even with mortgage and property taxes, and then revenue is incurred from rent, another tax might bring you into the negative...

[MrRational]

Originally Posted by WTBWestside

This might be a stupid question, but...

If your rental income exceeds your costs (sorta the idea, right?) the excess is taxable.

Hunt down IRS Sch E and Form 527. Read up.

[Lovehound]

In Arizona I have to charge a percentage of the rent. Must be small, it isn't much. That is a city tax based upon the amount of the rent.

Of course any income you receive from rentals is taxable on your income taxes.