If you have a rental property that gives you a $377 positive cash flow after make the mortgage payments and if there are no other expenses that you incur with regard to the maintenance of that property which you hold for rent then your taxable on the entire net amount so if after paying the mortgage payments it will depend on whether the taxes and insurance are held in escrow in our party your payment or whether you pay those separately. If there are other upkeep expenses of the property of course you're entitled to deduct those in arriving at the net amount of taxable income.
Answered on Feb 27th, 2014 at 8:17 AM