I sold a rental what happens to the items that have deprecation left such as plumbing and roof
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jgoetzer
New Member

My son rec'd $13809 non-employ comp & paid no taxes during 2018 and will take std deduct of 12k. Trying to understand how his taxes owed are $2k?

 
2 Replies
Vanessa
Level 3

My son rec'd $13809 non-employ comp & paid no taxes during 2018 and will take std deduct of 12k. Trying to understand how his taxes owed are $2k?

Because he was self-employed he is having to pay Self-Employment taxes which are Social Security and Medicare Taxes. These taxes are 15.6% of your income from self-employment (non-employee compensation is counted as self-employment)

If he did not have expenses related to his income, then he would also have $1,381 taxed at 10% for regular income taxes. 

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SweetieJean
Level 15

My son rec'd $13809 non-employ comp & paid no taxes during 2018 and will take std deduct of 12k. Trying to understand how his taxes owed are $2k?

Remember State taxes as well.
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