Rental income is taxable, but not everything you collect from your tenants is taxed. You can lower your rental income by subtracting the expenses incurred when getting your property ready for rent and then keeping it maintained as a rental. Rental income and expenses are reported on Schedule E, Supplemental Income and Loss. This is then filed with Form 1040.
For further questions about Phoenix personal income tax accounting, please contact Singer Tax & Accounting, PC today at (602) 482-8006.