Salaried Workers' Tax Guide to Side Rentals > 자유게시판

Employees with side rental properties can earn additional income, yet they encounter additional tax duties. The following guide breaks down what you need to know to stay compliant, minimize liability, and make the most of available deductions.

INTRODUCTION

If you earn a regular paycheck and also own a rental property, the IRS views the rental income as passive. Even though you’re not a full‑time landlord, the same rules that apply to anyone who rents property apply to you. Knowing these rules in advance can prevent surprises on your return.

TAXABLE INCOME FROM RENTALS

1. Total Rental Income – Sum all rent payments received during the year. Add any security deposits that are refunded to tenants.
   
   
2. Additional Income – If you charge for parking, laundry, or 節税対策 無料相談 other services, those amounts are also taxable.
   
   
3. Reporting – Rental income and expenses are reported on Schedule E (Supplemental Income and Loss). The form is attached to your Form 1040.
   
   

DEDUCTIBLE EXPENSES

You can subtract ordinary and necessary expenses from your gross rental income. Typical deductions include:

• Mortgage interest and property taxes
  
• Insurance premiums covering the rental property
  
• Repair costs, excluding improvements
  
• Utilities you pay on behalf of tenants
  
• Professional services—accounting, legal, property management
  
• Depreciation of the building (not the land)
  
• Advertising to attract tenants, moving costs, and office supplies for rental work
  
  

Depreciation is calculated using the Modified Accelerated Cost Recovery System (MACRS). For residential property, the recovery period is 27.5 years. You can use the IRS depreciation tables or a spreadsheet to keep track.

Depreciation uses the Modified Accelerated Cost Recovery System (MACRS). For residential property, the recovery period is 27.5 years. You can use IRS depreciation tables or a spreadsheet to monitor it.

SPECIAL RULES FOR SALARIED WORKERS

Because payroll tax withholding is already in place, the IRS won’t double‑tax your rental income. Yet, you must pay self‑employment tax if your rental activity is deemed a trade or business. Typically, residential rentals are passive, so the 15.3% self‑employment tax is not applied. If you actively manage the rental—frequent repairs, showing the property, or offering major services—the IRS may treat it as a business, triggering self‑employment tax.

CONSOLIDATED DEDUCTIONS

If your rental loss is below $25,000 and you file a joint return, you might offset up to $25,000 of ordinary income, given you meet the "active participation" test. Once your adjusted gross income exceeds $100,000, the deduction phases out. Salaried workers should track their AGI closely to see if they qualify for this benefit.

STATE AND LOCAL TAXES

Most states tax rental income similarly to federal rules, though some impose extra requirements:

• California: Requires filing a real property tax return (Form 593) if you own a rental property in California
  
• New York: Requires a separate filing for rental income, and may impose an additional local tax in certain jurisdictions
  
  

Consult your state tax agency for specific deadlines and forms.

RECORD KEEPING BEST PRACTICES

• Maintain a dedicated bank account for rental income and expenses
  
• Store receipts, invoices, and bank statements electronically
  
• Keep a mileage log when driving to the property for repairs or tenant meetings
  
• Keep a calendar of major repairs and improvements to facilitate depreciation calculations
  
  

FILING TIPS

1. E‑file – Most taxpayers file electronically, which speeds up processing and reduces errors.
   
   
2. Schedule E – Verify that income and expenses balance.
   
   
3. Tax Software – Most tax software includes a "Rental Property" module for automated depreciation and expense tracking.
   
   
4. Professional Advice – If your rental income is substantial or you’re unsure about the passive activity loss limits, consult a CPA who specializes in real estate taxation.
   
   

COMMON PITFALLS

• Mixing Personal and Rental Expenses – Personal utilities or mortgage payments must be apportioned if they serve both personal and rental purposes.
  
  
• Improvement vs. Repair – Adding a new bathroom is an improvement, thus depreciated, not deducted in the purchase year.
  
  
• Unreported Security Deposits – If you keep a security deposit that is not returned, it is considered income.
  
  
• Failure to File Schedule E – Missing this form can trigger penalties and additional scrutiny from the IRS.
  
  

CONCLUSION

Side rentals may boost a salaried worker’s income, yet they carry tax duties distinct from your regular paycheck. Reporting rental income accurately, using legitimate deductions, and staying organized keeps tax liability low and prevents costly errors. Maintain tidy records, watch passive loss limits, and, if uncertain, seek professional advice to keep your side rental profitable and compliant.