topic Is Net Income including or excluding taxes? in Investors & landlords

Is Net Income including or excluding taxes?

markmil11 — Sun, 09 Feb 2020 17:20:53 GMT

Hopefully thats self explainatory question, however to further elaborate. I have 2 rental properties and each year after putting in all the 1099 info (gross income) and entering all expenses and answering additional questions (QBI, etc), it gives a summary you can look at (yearly and 2 year). Is that net number, really net (After taxes) OR before taxes based on other incomes?

Re: Is Net Income including or excluding taxes?

JosephF8 — Sun, 09 Feb 2020 17:40:57 GMT

The Schedule E yearly and 2 year summary is just net Schedule E income before accounting for taxes.

Re: Is Net Income including or excluding taxes?

markmil11 — Sun, 09 Feb 2020 17:46:34 GMT

Thanks! So do you know where i can see what the taxes are on that net income? Its of course in some form based on total income (ordinary income) but i believe that 3.8% tax is also levied still from the obamacare 2013 law.

Re: Is Net Income including or excluding taxes?

JosephF8 — Sun, 09 Feb 2020 18:23:12 GMT

Yes rental income would be subject to the 3.8% Net Investment Income Tax (NIIT) presuming that you have enough income to be subject to the NIIT. Other than that the tax on your Schedule E income is not separately stated.

Re: Is Net Income including or excluding taxes?

markmil11 — Sun, 09 Feb 2020 20:46:53 GMT

Yes, thanks, i found some other examples online in tax postings...For me, marginal gains are 15% + the 3.8% so take 18.8% of what TT says is 'net' for my after tax profit.