rental income tax question

[Eric]

I'm renting out a house in CA for $1400/mo and the mortgage on it is $1900/mo. My question is, can I claim that as a $500/mo loss? or do I just report the $1400/mo as income?

 

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[Diane Kennedy]

I'm renting out a house in CA for $1400/mo and the mortgage on it is $1900/mo. My question is, can I claim that as a $500/mo loss? or do I just report the $1400/mo as income?

Go to irs.gov and download Schedule E, Form 1040. If the property is in your name, this is how you'll report the income/expenses for the rental.

You'll see the gross income amount (total annual collected) and a list of deductions for your rental property. Most likely, you'll have expenses such as mortgage interest (principal portion), property tax, homeowner's insurance, utiities, advertising and depreciation.

I strongly suggest you get a book on real estate tax so you can familiarize yourself with the general deductions for real estate.

 

[Eric]

I will be doing a lot of reading tonight. Thanks for the info!