Rental Income - how does it factor in support calculation?

[3junebugs]

What is the name of your state (only U.S. law)? PA

My child support case is coming up for review Tuesday and I am filling out the required paperwork that needs to be faxed (hopefully by today) for my telephone conference.

My husband and I purchased a home and then we were unable to sell the townhouse we moved from. Its currently being rented but below what we pay for in mortgage. Is the rent we receive still considered income?

Also, I do not currently work and haven't for over 5 years. My last income was imputed at about 28k and I expect that to stay the same. If this rent is considered earned income, would that be added on top of the imputed amount? Or would it be as if I took a lower paying job and an just earning below my potential? Also, would it be considered my income if both of our names (husband and I) are on the mortgage and lease agreement?

 

[3junebugs]

I just was looking through the paperwork again, and the property management company doesn't have me as a payee - but I am on the mortgage statement. Is it still considered my income if I am not listed as a payee?

 

[LdiJ]

I just was looking through the paperwork again, and the property management company doesn't have me as a payee - but I am on the mortgage statement. Is it still considered my income if I am not listed as a payee?

Its likely a moot point. Rental income is not the gross rents you receive, its the net profit you receive after expenses.

Mortgage interest, property taxes, insurance on the property, the management company fees, depreciation, repairs, etc., all get deducted from the gross rents before you know what your rental income is.

Nine times out of 10, unless the property is substantially paid off or actually paid off, you have a loss rather than a profit.

 

[3junebugs]

Its likely a moot point. Rental income is not the gross rents you receive, its the net profit you receive after expenses.

Mortgage interest, property taxes, insurance on the property, the management company fees, depreciation, repairs, etc., all get deducted from the gross rents before you know what your rental income is.

Nine times out of 10, unless the property is substantially paid off or actually paid off, you have a loss rather than a profit.

Your right - I just thumbed through our tax return again and found that we claimed a loss on the property - so no 'income' was earned. Thanks!