How Rental Income is Calculated?

[ProPerDoper]

What is the name of your state? CA

Is the amount of mortage payment paid on my rental property deducted from income to arrive at net rental income for support?

I ask this, as this is how opposing counsel attempted to disclose net income on my ex's rental property years ago. I can't recall what we actually settled on, but I believe we used the number exactly as stated on her Schedule E.

I've just put my home into service as a rental, last November. I filed my I&E recently stating income for the rental after reducing the mortgage amount paid. After figuring my income taxes, I realize that only mortgage interest, taxes, insurance, repairs, etc., are deducted from income. I'm assuming that since Sched. E is typically used for determining income available for support, that this method applies with the court also.

So then, am I correct that rental income = all rent received, minus interest, taxes, insurance, repairs, fees, and depreciation?

I realize that depreciation can be entered back into the dissomaster for support purposes.

Thanks!

 

[LdiJ]

What is the name of your state? CA

Is the amount of mortage payment paid on my rental property deducted from income to arrive at net rental income for support?

I ask this, as this is how opposing counsel attempted to disclose net income on my ex's rental property years ago. I can't recall what we actually settled on, but I believe we used the number exactly as stated on her Schedule E.

I've just put my home into service as a rental, last November. I filed my I&E recently stating income for the rental after reducing the mortgage amount paid. After figuring my income taxes, I realize that only mortgage interest, taxes, insurance, repairs, etc., are deducted from income. I'm assuming that since Sched. E is typically used for determining income available for support, that this method applies with the court also.

So then, am I correct that rental income = all rent received, minus interest, taxes, insurance, repairs, fees, and depreciation?

I realize that depreciation can be entered back into the dissomaster for support purposes.

Thanks!

Yes, you have it correctly, including the fact that depreciation will usually be entered back into income, since its a non-cash expense. Its also correct that the portion of the mortgage payment that covers principal, is NOT deductible for either purpose.

 

[ProPerDoper]

Yes, you have it correctly, including the fact that depreciation will usually be entered back into income, since its a non-cash expense. Its also correct that the portion of the mortgage payment that covers principal, is NOT deductible for either purpose.

Thank you for your response.

It seems to me that I heard of a case where the court allowed a certain percentage deduction in income as an expected/anticipated vacancy rate. Every heard of it?

 

[nextwife]

Yes, you have it correctly, including the fact that depreciation will usually be entered back into income, since its a non-cash expense. Its also correct that the portion of the mortgage payment that covers principal, is NOT deductible for either purpose.

LdiJ: not a whit of maintenance, LL pd. heating costs, sewer/water fees (in our area these are often pd by LL) SNOW AND ICE removal (at $40 to 150 per plowing, depending upon the rental property's parking surface X an average of three plowings per week this winter) gets deducted from the gross income? These are hard costs to the LL and certainly not PROFIT.