Owning Costs More than Renting

[1insider]

Originally Posted by freemkt

Do you report your rental income?

Yep. It's a significant portion of my income and has been for many years.

[honobob]

Originally Posted by mathjak107

exactly . the cash flow was not what they wanted so they set the price they thought was a good deal for them . i saw it differently if they could ever be sold and we were willing to wait a decade if we had to , they were not . investing is a device for transferring money from the impatient to the patient." -- Warren Buffett


recognizing value where others don't is what investing is all about .

the partners we bought out had no clue what the property's were worth

[mathjak107]

that is right , they came up with a price based on cash flow . repeat after me , i didn't chose the price , they did .

they didn't see the value of waiting , i did .

you are so hell bent on proving me wrong that you are becoming annoying , so back to ignore you go . it is a waste of time conversing with you

[freemkt]

Originally Posted by 1insider

Yep. It's a significant portion of my income and has been for many years.

I don't think the two I know report their rental income and I don't even know how it would work.

If you're subletting at a profit, can you take depreciation? Is the rent you pay an allowable expense?

They are both collecting SS disability - is their rental income on property they do not own considered earned income?

e.g. if you pay $10,000 rent and collect $15,000 (net income $5,000) do you pay tax on $5,000 or some other amount?

[mathjak107]

only owners can take depreciation not renters so the fact you sublet still means you are not an owner .

yes subletting is taxable income . the profit is everything over the rent you pay the owner . we held the lease rights on a bunch of commercial spaces and sub leased them out .

[1insider]

Originally Posted by freemkt

I don't think the two I know report their rental income and I don't even know how it would work.

If you're subletting at a profit, can you take depreciation? Is the rent you pay an allowable expense?

They are both collecting SS disability - is their rental income on property they do not own considered earned income?

e.g. if you pay $10,000 rent and collect $15,000 (net income $5,000) do you pay tax on $5,000 or some other amount?

I own separate properties that I rent to others with the usual investment property benefits like depreciation. I rent my primary residence from someone else as the rent I pay is far less than the cost to own that particular property. I make money on both sides of the own/rent fence.