Consumption and Real Estate
Question about taxes on rent and landlord insurance?
My friend is renting a place to me for $200 a month This is the first month of me living here and I haven’t even paid the rent yes to it will not be an issue. They were wondering if they had to pay takes on the rent next year and what they would be. Also are they in any legal obligation to get landlord insurance. We have been friends forever and we are both good people, so I am not gonna screw them and vice verca there is no worries.
Yes, they will have to pay taxes on any and all income just like every one else. We cannot tell you how much their taxes will be. Only the IRS can. They could try asking a tax professional. Any home owner should always have home owners insurance. All they need to do is change their current policy. It is just about the same and there should not be much cost difference. Their insurance agent should be able to explain that to them.