Reserves 4 Estimated Tax
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Reserves 4 Estimated Tax (by Lynx [GA]) Apr 13, 2019 9:41 AM
       Reserves 4 Estimated Tax (by Robert J [CA]) Apr 13, 2019 10:29 AM
       Reserves 4 Estimated Tax (by NE [PA]) Apr 13, 2019 10:33 AM
       Reserves 4 Estimated Tax (by Richard [MI]) Apr 14, 2019 7:07 AM
       Reserves 4 Estimated Tax (by Busy [WI]) Apr 14, 2019 9:46 AM
       Reserves 4 Estimated Tax (by David [MI]) Apr 14, 2019 12:43 PM
       Reserves 4 Estimated Tax (by Sisco [MO]) Apr 14, 2019 3:03 PM
       Reserves 4 Estimated Tax (by Pmh [TX]) Apr 15, 2019 1:51 PM

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Reserves 4 Estimated Tax (by Lynx [GA]) Posted on: Apr 13, 2019 9:41 AM
Message:

With rentals, income is fairly regular and consistent. Expenses vary all over the map. Some months and years high; some low. Thus taxable profits can vary wildly. What formula or method do you use to set aside money to cover taxes on your rental income profits? Do you use a % of your gross receipts to reserve for your quarterly estimated taxes? If so, what % of gross receipts is reasonable in light of the variation in profits year to year, given the wide variation in expenses yr to yr?

--99.122.xx.xxx




Reserves 4 Estimated Tax (by Robert J [CA]) Posted on: Apr 13, 2019 10:29 AM
Message:

Knowing about deferred maintenance, cost of evicting a bad tenant, unexpected repairs, natural disasters, property taxes and income tax -- I try to bank every penny pulled out of a rental.

In one apartment building purchased years ago, the first 10 years were lean. Anything that came in would go out. The next 10 years I have good and marginal years. The last 10 years it's been nothing but "terrific income and profit".

--47.156.xx.xx




Reserves 4 Estimated Tax (by NE [PA]) Posted on: Apr 13, 2019 10:33 AM
Message:

I've never escrowed with rentals. I escrow heavy on the flips and that has always seemed to cover what's been needed and then some. --50.107.xxx.xx




Reserves 4 Estimated Tax (by Richard [MI]) Posted on: Apr 14, 2019 7:07 AM
Message:

I plan on having about 40-50 percent of scheduled rent taken by maintenance, repairs, etc. So that leaves about half or less as taxable income on free and clear houses. Less of there's a mortgage payment. I budget for tax on that amount and update quarterly due to vacancies and unexpected things.

An example of the unexpected recently: a large oak tree on one property died from oak leaf wilt last summer. It will need to be removed. $500 minimum in unexpected costs. --66.188.xx.xxx




Reserves 4 Estimated Tax (by Busy [WI]) Posted on: Apr 14, 2019 9:46 AM
Message:

Also look at last few years’ tax returns. Unless you are expecting substantial change, such as getting a couple more units occupied with few expenses, that should serve you well based on your estimated taxes covered what you had PAID in taxes the past year. --70.92.xxx.xxx




Reserves 4 Estimated Tax (by David [MI]) Posted on: Apr 14, 2019 12:43 PM
Message:

IRS has safe habor amounts you can use. --50.4.xxx.x




Reserves 4 Estimated Tax (by Sisco [MO]) Posted on: Apr 14, 2019 3:03 PM
Message:

15% of gross income goes to pay income tax. Of course, there are many, many variables. --72.172.xxx.xx




Reserves 4 Estimated Tax (by Pmh [TX]) Posted on: Apr 15, 2019 1:51 PM
Message:

Lynx. what you should escrow is specific to your circumstances. I pay no escrows to mortgage cos but I build up qtrly payments based on prior year returns. it makes me laugh that there is all this squealing about lower tax refunds this year. many didn’t notice higher pay checks...and why lend the govt $ (?) a true example of the Darwin theory..... --70.119.xxx.xxx



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