Do I Need to Claim My Rental Income?
- Legally you are required to claim your rental income come tax season.
- Most conventional lenders will require proof of rental income claimed on your taxes in order to use that income to qualify on your next purchase.
- When claiming rental income, remember you only pay taxes on the NET income (after expenses). Many investors owe little to no money come tax season, after writing off all property expenses (see below for more details).
- Unlike business income, we can use your rental properties GROSS income (per the lease agreement) to help maximize your qualifying power on your next rental property.