Tax Law (Questions About Taxes)/calculation question


Good day
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.

If you are in the USA, you need to file a form 1065 partnership tax return and then report the income on your individual returns - including depreciation and other important facets such as original cost basis and if you have basis to deduct losses if they arise.

No clue about tax in Trinadad.

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Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

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