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I now pay a mortgage of 1300 a month 2br / 1 bath home. The house is currently 900 per month with a -400 that I deliver each month rented. When I do my taxes, how is that even if the only thing the HR application, a statement of interest and how the monthly rental agreement.

5 Thoughts on Can I tax relief if my mortgage is to pay the monthly rent, tenant per month?
  1. Reply
    February 12, 2013 at 2:59 am

    schedule C and you must file a 1040 long form

  2. Reply
    February 12, 2013 at 3:51 am

    Check out your Schedule E.
    You’ll be showing a LOSS which will offset the rental income and then will offset other income on your return.
    You should NOT be including this on a Schedule A, except for any time you were living there. You have converted property to rental property and mortgage interest and taxes and costs and expenses go on Schedule E. Sounds like you need a professional to set you up on this.
    And it is NOT Sch.C, either.

  3. Reply
    February 12, 2013 at 4:11 am

    Maybe. Rental income and expenses go on Schedule E (not C as another stated!). The principal portion of the payments is not a tax deduction but the mortgage interest and all other rental expenses are, including property taxes, repairs & maintenance, utilities, insurance, depreciation, etc. If you meet the active participation rules and income limitations for passive activity losses you may have a tax loss that you can use against other income.

    Find an experienced tax pro to assist you in the first year. Anyone who only asks about interest and the rental income does NOT know what they are doing!! Most importantly you need to get the depreciation schedule set up properly since depreciation is recaptured at sale time whether you take a depreciation deduction or not.

  4. Reply
    February 12, 2013 at 4:23 am

    Boston gives the correct answer above.

    As far as your mortgage goes, you are not allowed to deduct your full monthly payment. You can deduct the interest portion of the payment, the principal cannot be deducted. Instead, you claim depreciation to deduct the cost of the home and any furniture/appliances (but not any land value). The building itself is depreciated straight-line over 27.5 years.

  5. Reply
    February 12, 2013 at 5:12 am

    No. You can deduct mortgage interest, real estate taxes and insurance, but can’t deduct the entire mortgage payment since the part that’s principal is building your equity. You can deduct depreciation to cover that.

    In your situation, no you can’t deduct the $ 400 anyplace.

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