Income Tax

Below are several methods you can use to reduce your taxable rental income, along with relevant authoritative sources for further reference. 1. Utilize Allowable Deductions a. Operating Expenses You can deduct ordinary and necessary expenses required to manage, conserve, or maintain your rental property. These include: Authority: b. Mortgage Interest Interest paid on loans used … Read more

Backup withholding tax is a federal tax withholding requirement mandated by the Internal Revenue Service (IRS). It requires payers to withhold a certain percentage (currently 24%) of payments made to payees under specific circumstances. This mechanism ensures the collection of income taxes from individuals and businesses that may not have satisfied their tax obligations. When … Read more