Accounting, Payroll & Pension Issues/Ref: question
Interested in finding out how taxes on rental properties are calculated where there are multiple owners that are NOT real estate professionals.
For example in the following scenario what would be tax owed on a rental property that three people own assuming that neither of the three parties do not have additional income.
Assuming the property brings in $20,000 in income annually and the expenses are $7000 per year. Thus the profit is $13,000 on the rental.
Is taxes due on the $13,000 or is each of the three owners responsible for $4333 which is $13,000 divided by 3.
First, this forum is a place for bookkeeopng and accounting questiions as oipposed toi tax questioins like this.
Having said that, generally the income from a commonly owned piece of property is split among the owners based on their respective ownership portion.
Each owner would report their portion of each income or expoense item - rent income, insurance, proiperty taxes, etc - on their repecive tax returns.
if this doews not answer your question, please ask asgain with more information.