Dan,
IP Expenses are tax deductible.
IP Income is taxable.
Suppose my taxable salary is $80,000.
IP Expenses: $20,000
IP Income: $15,000
So, I have to pay tax on the amount of: $80,000 + $15,000 - $20,000
What this shows is that the rental income of $15,000 is taxable and is taxed.
If I...