If i reinvest my rental income to buy another property do i have to pay taxes on the rental income?

[loch-7]

lets say i bought a house for 100k and i get rental income of 30k if in that year i reinvest that money to buy a new property do i have to pay taxes on the 30k?

[VolvoGirl · Accepted solution]

Yes.  Doesn't matter what you do with the income or proceeds even if you sold the first rental.

[loch-7]

what if its an llc would the expense out do the income?

[TaxGuyBill]

The rental income would still be taxable.

You would get to claim depreciation and other expenses on the new property, that that does not change the fact that your rental income is still taxable.