How Does A Full Time RE Investor Pay Income Tax?

Say I take on REI full time in the form of owning multi-unit properties long term. My only form of income would be from the profits from rents. If I pay all my dues for each property owned (property taxes and all other bills) and have money for self as income how would I pay income tax on that?



I kind of already know the answer but just want to be sure as I currently have a full time 9-5 but would like to do REI full time in this form at some point.





Thanks

Noc

[ Edited by noc on Date 11/27/2006 ]

Comments(2)

  • ctsee1127th November, 2006

    Quote:
    On 2006-11-27 18:46, noc wrote:
    Say I take on REI full time in the form of owning multi-unit properties long term. My only form of income would be from the profits from rents. If I pay all my dues for each property owned (property taxes and all other bills) and have money for self as income how would I pay income tax on that?

    I kind of already know the answer but just want to be sure as I currently have a full time 9-5 but would like to do REI full time in this form at some point.


    Thanks
    Noc

    <font size=-1>[ Edited by noc on Date 11/27/2006 ]</font>


    You will probably want to form a corporation or LLC; for a list of Real Estate Deductions with LLC or Corporation, see www.instantinc.us Real Estate Investing Section - Tax Organizer

  • noc28th November, 2006

    Thanks for the info.

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