As the law stands today, the tenant should retain a percentage (I can't tell you how much exactly because I'm presently in NYC on business and don't have the Tax Code at hand) and pay it to the government. This is a tax retention. At the end of the year, the property owner will get a credit on the income tax due for the funds retained.
If your property is commercial, you should also be receiving and paying 12% ITBIS (to be increased to 16% shortly).
|
(11)
20% tax on rentals
