this post was submitted on 22 Apr 2024
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A Boring Dystopia

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[–] [email protected] 5 points 6 months ago (2 children)

I don’t know where you live but in the US the IRS considers rental income as regular income for tax purposes. So when you fill out your taxes it just goes in your bog standard income section.

Additionally all expenses incurred for certain repairs and maintenance are tax deductible. My house gets similar tax breaks as I work from home, so things like plumbing repair (I guess considered an essential service) and regular maintenance can be deducted (although I’ve never gone over the standard deduction so I never really realize those benefits).

In every imaginable way rental income is better financially than “standard” income…though not morally.

[–] Crashumbc 9 points 6 months ago (1 children)

FYI, that's mostly a myth. Taking "home office" deductions has VERY strict rules. Most people working from home don't qualify and what can be deducted is very limited in scope.

[–] [email protected] 1 points 6 months ago

You’re not wrong, even including what was available it still wasn’t anywhere near enough to make itemized deduction a reasonable option. I mentioned the plumbing mostly because I thought it was funny that it was actually included in the list of valid deductible expenses for maintaining a home office.

[–] [email protected] 5 points 6 months ago (2 children)

the IRS considers rental income as regular income...it just goes in your bog standard income section.

In every imaginable way rental income is better financially than “standard” income

?

[–] FrowingFostek 2 points 6 months ago

If I'm reading the post correctly.

One seems to speak to the way the IRS views or categorizes this income and the other is what the financial realities are for this mode of income.

But, I'm not OP so IDK I'm just going off how interpreted the post.

[–] [email protected] 0 points 6 months ago

Sorry I meant in the sense that the income is treated the same plus the benefits of additional deductions. You don’t typically get additional deductions or reimbursements for a normal commute job (for instance gas, maintenance, licensing, etc) that you might see for say…well my wife is a good example as a veterinarian. She’s fully reimbursed for CE, licensing, and other items required for her job.