Rental income...........how does it work?

[sssb2000]

Originally Posted by Doggz3

Long story short: you report your rental income and expenses on Schedule E. Only the net gain (i.e. income over expenses) is reported on the 1040.
Example:

$10,00 in rent collected

$4,000 in mortgage interest
$500 in fire insurance
$1,000 for management expenses
$800 for repairs
$2,000 for depreciation (if you choose to take it - you have to add this back in when you sell if you do)


income to report on 1040 = $1,700

capeesh?

Net losses are subject to passive loss activity rules, but if your income is in the $50,000 range, you should be able to take some losses from your investment if you go cash negative (i.e. in years that your expenses exceed your income).

Capeesh!
until you started your last paragraph. Can you please explain? income: ~90k