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PDF Editor FAQ

Does rental income count towards your total annual income?

The issue here is whether it is your “gross income” or your “adjusted gross income” or your “taxable income” — and each is a different figure.For purposes of applying for a loan, you should differentiate between your salary and your rental income. It’s fine to say, “I collect $ 18000 in rental income.” That’s the whole truth. You could also say, “I have a rental which brings me $ 18,000 before expenses.”I would not lump the $ 18,000 in with your salary when they ask for total income. However, sometimes those credit applications ask only one question: “what is your total income.” In that case, I think your total income is the $ 18,000 plus your gross salary. Remember, there is a difference between “total income” and “net income.” If you have the option, it’s better to show where the income is coming from, but as we know, some credit grantors are too stupid to ask those questions.If we want to get really picky, although you make $ 50,000 from your salary, you certainly don’t take all that home: you net probably something like $ 42 - 44,000 after Uncle takes his share.So, this long winded answer, from a CPA, is best summarized by saying: your total income is $ 68,000. Your Adjusted Gross Income is $ 51,800. Your taxable income is, well, whatever is left after deducting your exemptions and the standard deduction or itemized deductions. Whew!

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