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When investing in rental property, what is the highest purchase price versus rental income ratio I should consider This is inner big city (Tampa) low income apartments with each property consisting of 20+ units.?
To figure that out you would need to figure out what payment you will need to make on the mortage. You want to rent to cover the payments plus maintenance and some proffit.
Is cheap rental propery only available to low income families?
"This depends on where you live, but to the best of my knowledge, you can get cheap rental property if you are not a low income family. However, you would need to check with real estate agents in your own area to make sure of this."
If you are a victim of hit-and-run accident caused by a rental car driver can you claim the damages from this rental car company directly?
You can only claim against the rental company if the driver took out their insurance. If he has his own separate insurance, that is where you need to make the claim.
If your only income is social security but you took a loss selling your home do you file income tax?
Probably not, assuming it was your personal residence and not an investment or rental property and you never claimed a home office deduction. But if you get a 1099-S for the sale of the home, you should file a return and list the sale on Schedule D and show your basis to inform the IRS whether you had a profit or a loss on the sale. (They don't know if you don't show them and will presume that 100% of the sale price was a profit unless you file Schedule D.) If the house was a personal use property (you lived in the house), you cannot claim a capital loss. If the house was not a personal use property, then you can claim a capital loss. Even though you might not have any income to offset this year, you should be able to carry over some or all of the loss and it might prove useful in the future. You need to file in order to claim the loss. If you ever claimed depreciation (it was a rental property or you took the home office deduction), then you need to recapture the depreciation. You should file in that case.
Who needs rental property insurance?
You will need rental property insurance if your are the owner of a rented property. This insurance, in addition to standard household insurance, covers things such a public liability.
Does homeowners insurance cover rental property damages?
No, you would need to purchase an Insurance policy for your Rental Property. Sometimes referred to as landlords Insurance.
Will you have to pay taxes on your rental property like income?
Yes. If you have income from rental property, you will need to pay taxes on the profits. That means that you take the total rent paid, and subtract your expenses, such as the mortgage, taxes, repairs, and other expenses.There are a number of forms and schedules that you will need to complete. A tax advisor can assist you, and most commercial tax prep software such as H&R Block @Home or Turbo-Tax can handle most of the calculations for you.
If you rent out your house do you have to claim it as an income?
Sure you do you will have to use the 1040 tax form along with the schedule E Supplemental Income and loss form to report your gross rental income and expenses on the rental real estate house. Go to the IRS gov website and use the search box for the forms and instruction that you will need for this purpose. Or you can order them by phone by calling 1-800-829-3676
I am not a citizen of the US and I purchase a house in the US for investment and rent the place out How should a alien pay tax on rental income earned when he is not a citizen of the US?
You need to file a 1040NR (non-resident) return. Rental property returns can be a little tricky. The property needs to be depreciated and all expenses claimed properly.
How much tax do you pay on rental income?
Dubai is a tax friendly country for property owners. You don't have to pay taxes on the income you earn by renting residential property. But, there is a 5% municipality housing fee which is included in your monthly DEWA bill. For commercial properties like offices or short term rentals like Airbnbs, there is a 5% VAT if your annual income exceeds AED 375,000, and you’ll need to register for VAT. You can find more detailed information on property websites like Property Finder and Bayut.
What are the requirements for obtaining a buy-to-let mortgage in the UK?
To obtain a buy-to-let mortgage in the UK, you typically need a good credit score, a steady income, and a deposit of at least 25 of the property's value. Lenders will also assess the rental income potential of the property to ensure it can cover the mortgage payments.
Is rent considered ordinary income?
Yes it is taxed as ordinary income and the net rental income is reported on page 1 line 17 of the 1040 tax form. Your net rental income is added to all of your other gross worldwide income and taxed as ordinary income at your marginal tax rate on your 1040 income tax return. Your gross passive rental income and expenses are reported on the schedule E of the 1040 tax form. Nonpasive gross rental income and expenses are reported on the schedule C of the 1040 tax form. The difference is that you do not need to pay Social Security on Rental Income.
