Do I have to pay tax on my rent payments?

[Triforceofcourage]

I know this is a stupid question but I am moving into an apartment soon and would like to know if there is a sales tax or any tax I would have to pay on the rent. I am in Florida.

Thanks,

Tri

 

[Heisenberg]

Not unless Florida has some screwy tax laws.

 

[Slew Foot]

Nope, at least not in CA.

On a side note, if you're the landlord, is rent considered income that is taxed?
I.e. I buy a $600K house and rent it out for $2000 a month, is there income tax charged on the $2000?

 

[dullard]

Tax is INCLUDED already in the rent payments. You do not have to pay any more.

 

[Gunslinger08]

Sales tax only applies to products, not services. Rent = service.

 

[Gunslinger08]

Originally posted by: Slew Foot
Nope, at least not in CA.

On a side note, if you're the landlord, is rent considered income that is taxed?
I.e. I buy a $600K house and rent it out for $2000 a month, is there income tax charged on the $2000?

Yes.

 

[Heisenberg]

Originally posted by: Slew Foot
Nope, at least not in CA.

On a side note, if you're the landlord, is rent considered income that is taxed?
I.e. I buy a $600K house and rent it out for $2000 a month, is there income tax charged on the $2000?

It varies by state, but generally yes it's counted as income and thus taxed.

 

[EPCrew]

No. But I hear that you can somehow write off NJ rentals. I'm not sure how that works, but a friend of mine did it after his accountant mentioned it.

 

[JS80]

Originally posted by: Slew Foot
Nope, at least not in CA.

On a side note, if you're the landlord, is rent considered income that is taxed?
I.e. I buy a $600K house and rent it out for $2000 a month, is there income tax charged on the $2000?

you can offset the income with depreciation but when you sell the house your cost basis is Cost minus Depreciation taken. loophole is kick tenant out and live in the house for required period to get capital gains exclusion FTW.

 

[rivan]

Originally posted by: Slew Foot
Nope, at least not in CA.

On a side note, if you're the landlord, is rent considered income that is taxed?
I.e. I buy a $600K house and rent it out for $2000 a month, is there income tax charged on the $2000?

The short answer is yes, but there are also many credits that can offset those taxes. Talk to a tax pro for specifics - even if it costs you a couple hundred for a consultation. It'll more than pay off.

 

[NogginBoink]

Originally posted by: joshsquall
Sales tax only applies to products, not services. Rent = service.

Not at all true in all areas. In many places you'll pay tax on services. (But I wouldn't necessarily call rent a service, either.)

 

[GasX]

Originally posted by: EPCrew
No. But I hear that you can somehow write off NJ rentals. I'm not sure how that works, but a friend of mine did it after his accountant mentioned it.

The landlord has to pay the property tax, but you can get a tax credit for your contribution to that payment. It's not much, but it is better than nothing.

 

[EPCrew]

Originally posted by: Mwilding

Originally posted by: EPCrew
No. But I hear that you can somehow write off NJ rentals. I'm not sure how that works, but a friend of mine did it after his accountant mentioned it.

The landlord has to pay the property tax, but you can get a tax credit for your contribution to that payment. It's not much, but it is better than nothing.

Isn't that always the case that the landlord is paying the property taxes? And you, as the renter, are indirectly making a contribution to that by paying rent.

 

[EagleKeeper]

Originally posted by: EPCrew

Originally posted by: Mwilding

Originally posted by: EPCrew
No. But I hear that you can somehow write off NJ rentals. I'm not sure how that works, but a friend of mine did it after his accountant mentioned it.

The landlord has to pay the property tax, but you can get a tax credit for your contribution to that payment. It's not much, but it is better than nothing.

Isn't that always the case that the landlord is paying the property taxes? And you, as the renter, are indirectly making a contribution to that by paying rent.

Some states will take that logic into account and provide some crdit to you against your state taxes.

Originally posted by: joshsquall
Sales tax only applies to products, not services. Rent = service.

This is dependent on a state-bystate basis.

Some states will allow sales tax to be charged on services.