Salaried Workers' Tax Guide to Side Rentals > 자유게시판

Salaried employees owning a rental side venture can benefit from extra income, but they also face a new set of tax responsibilities. This guide explains what you must know to remain compliant, reduce liability, and maximize deductions.

INTRODUCTION

If you get a regular paycheck and own a rental home, the IRS views the rental income as passive. Although you’re not a full‑time landlord, the same rules that apply to all rental property owners apply to you. Familiarizing yourself with these rules early can stop unexpected tax issues when filing.

TAXABLE INCOME FROM RENTALS

1. Gross Rental Income – Add together every rent payment you receive during the year. Also add security deposits that are returned to tenants.
   
   
2. Extra Income – Charges for parking, laundry, or other services are taxable.
   
   
3. Reporting – Schedule E (Supplemental Income and Loss) is where you report rental income and expenses, then attach it to Form 1040.
   
   

DEDUCTIBLE EXPENSES

You may deduct ordinary and necessary expenses from your gross rental income. Commonly deductible items include:

• Mortgage interest and local property taxes
  
• Insurance premiums covering the rental property
  
• Repairs (but not improvements)
  
• Utilities paid by you for tenants
  
• Professional services—accounting, legal, property management
  
• Depreciation of the building but not the land
  
• Advertising, moving expenses, and office supplies used for rental operations
  
  

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). Residential properties recover over 27.5 years. You can refer to IRS depreciation tables or a spreadsheet to track it.

SPECIAL RULES FOR SALARIED WORKERS

Since you have payroll tax withholding, the IRS won’t double‑tax your rental income. Still, you must pay self‑employment tax if your rental activity qualifies as a trade or business. Usually, residential rentals are passive, so the 15.3% self‑employment tax does not apply. 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

Should your rental loss be less than $25,000 and you file jointly, you could offset up to $25,000 of ordinary income if you satisfy the "active participation" test. If your AGI goes over $100,000, the deduction starts to phase 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 local taxes in certain areas
  
  

Check your state tax authority for specific filing deadlines and forms.

RECORD KEEPING BEST PRACTICES

• Keep a separate bank account for rental income and expenses
  
• Store receipts, 節税対策 無料相談 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; this helps with depreciation calculations
  
  

FILING TIPS

1. E‑file – Electronic filing is standard and accelerates processing and cuts errors.
   
   
2. Schedule E – Double‑check that your income and expenses balance.
   
   
3. Tax Software – Many programs feature a "Rental Property" module that automates 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 split if they serve both personal and rental purposes.
  
  
• Improvement vs. Repair – A new bathroom addition is an improvement and should be depreciated, not deducted immediately.
  
  
• Unreported Security Deposits – If you keep a security deposit that is not returned, it is considered income.
  
  
• Failure to File Schedule E – Omitting this form may trigger penalties and IRS scrutiny.
  
  

CONCLUSION

Side rentals can enhance a salaried worker’s income, though they involve tax obligations that differ from your regular paycheck. Accurate reporting, legitimate deductions, and organization help keep tax liability low and avoid costly mistakes. Maintain tidy records, watch passive loss limits, and, if uncertain, seek professional advice to keep your side rental profitable and compliant.