GreasenUSA said:
Right, when you record your income, you record it as gross. That's only one part of the total equation though.
Sure, I get that. From the same site...
Quote:
If you receive rental income from the rental of a dwelling unit, there are certain rental expenses you may deduct on your tax return. These expenses may include mortgage interest, property tax, operating expenses, depreciation, and repairs.
The thing I expected to see there back when I first started looking into all of this was mortgage, the primary "expense" for the average Joe. Depreciation was the one thing I was unaware of that seems like it could be a major deduction. Beyond that the rest of the expenses seem like they would be minimal in the big picture.
I'm simply pointing out that my original assumption in real estate was that you would be taxed on the net (of rental income minus the mortgage) which turns out not to be the case.