This is the first year we have rental income(passive), and doing tax planning now, could anybody help point out if I got the direction right? Thank you very much!
For example as below with dump simple numbers:
- Annual Rental Income: $30k
- Expense including cleaning, travel, advertise, HOA, insurance etc.:$2K
- Property tax: 5k
- House deppreciation: assume it's a new house, value 275k(exluding land value), annual deppreciation is 10k(?)
- Mortgate principal: 10k,interest 10k.
1. So total rental income is 30-2-5-10 = 10k? Not sure if the mortgate&interest will count as cost as well?
2. If I have 100k taxable salary income, does the property tax 5k and mortgate interest 10k still bring my taxable income down to 85k?
