Sentences with phrase «rental income for tax purposes»

Not exact matches

For the purpose of evaluating Medicare tax exposure, it's important to know that «unearned» net investment income includes net rental income, dividends, taxable interest, net capital gains from the sale of investments (including second homes and rental properties), royalties, passive income from investments in which you do not actively participate (such as a partnership), and the taxable portion of nonqualified annuity payments.

Whether it's dividends, rental income, capital gains or salary, it should all be treated equally as income for tax purposes, he says.

Therefore, the housing allowance (or rental value of the home) may be included in earned income for the purposes of calculating the Earned Income Tax Cincome for the purposes of calculating the Earned Income Tax CIncome Tax Credit.

In this case the accounting is on Schedule E, but the bottom line can not be negative (i.e.: expenses, including depreciation, that exceed the rental income - can not be deducted and are lost for tax purposes).

I am a retired senior citizen having an annual income of less than 3 lakhs from interest on deposits, EPF pension etc and hence not liable to pay income tax.Of late my wife who is not employed but a senior citizen got some amounts by way o f family settlements after her mother's death which she deposited in her name and the total annual of interest comes to about Rs 1.5 lakhs.According to her the income from her investments can not be clubbed Will her income be added to my income for the purpose of ascertaining my income tax liability.She has a separate pan no.earlier taken as she had rental income.

The downside of flipping for tax purposes is that higher taxes are frequently associated with flipping income as compared to rental income.

Rental income is classified as passive income for tax purposes and is treated the same as any other form of business income except that it is not subject to self employment taxes which is a big break.