If I buy an apt in the US and I rent it, can I deduct tax + mrtg interests from rent and other financial rev.?

Question

I am EU citizen, now living and working in the US on H1 visa.
I am planning to buy a condo apartment in the US taking a mortgage.
If in a couple of years I might move back to Europe and I might decide to rent the apartment.
This can be the scenario in two years:
My revenues in the US will be only the rent ($20,000 per year) and financial revenues from CD and savings accounts ($5,000 per year). Total $25,000
My property taxes will be $3600 per year, my mortgage interests will be $12,000 per year and I will have additional $3,300 manteinance costs per year.
I am EU citizen and I will live and work and in Europe at that time.
How much taxes will I have to pay per year in the US?

Answer 1

Property taxes and maintenance costs are deductible against the rental income. I'm not certain I know what the $12,000 represents. To the extent that it represent interest payments, it is deductible. If any part of the amount is repayment of the principle of the mortgage, that part is not deductible. You may also be able to deduct the portion of your condo fees that are used for general maintenance and upkeep of common areas. The IRS publication below deals with residential rental property. I hope it answers your questions.