Maaser and Taxes
Question
How should a landlord calculate maaser (tithing) on rental income, and when should it be given? Should it be calculated before or after paying income tax on the rental income?
Answer
Shalom!
Thank you for your question.
If one earned $100,000 dollars, but pays $10,000 in taxes, he doesn't really earn $100,000 but $90,000. As such, he gives Ma'aser on $90,000.
Since Ma'aser is separated from one's net income, after deducting all expenses directly related to earning that income (such as taxes, travel expenses, etc.).
One may give Ma'aser in advance for future income. However, lechatchilah, one should separate Ma'aser each time income is earned. If this is difficult to do in practice, one should keep a record of the income received and set a fixed time once a month to separate Ma'aser.
Wishing you much success.
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