| Is Rental Income Taxable? |
 | Yes, rental income is taxable.
However, you're allowed to reduce your rental income by subtracting expenses that you incur to manage, conserve, and maintain your rental property.
Generally, cash or the fair market value of property you receive for the use of real estate or personal property is taxable to you as rental income. You can generally deduct expenses of renting property from your rental income. Income and expenses related to real estate rentals are usually reported on Form 1040, Schedule E (PDF). Income and expenses related to personal property rentals are reported on Form 1040, Schedule C (PDF) or Form 1040, Schedule C-EZ (PDF) if you are in the business of renting personal property as a sole proprietor.
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