2007-01-20 08:31:17 · 5 answers · asked by uhh y 1 in Business & Finance ➔ Taxes ➔ United States
do I have to report the entire amount received as rent or just the difference between the mortgage paid and the rent...i.e. $1195 received as rent, mortgage payment $807.
$388 reported as income.
2007-01-20 08:44:00 · update #1
Only the interest is deductable.
Remember, you must also depreciate the property. This can, and usually does, cause the property to be run at a loss for tax purposes.
2007-01-20 09:14:08 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋
The entire amount received as rent must be reported as income. Only the interest (and other expenses) are deductible, not the principal of the mortgage payment. The principal is building your equity in the property, so it's exchanging something you have (money) for something you still have after you turn over the money to the lender (equity).
2007-01-20 12:45:59 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Only the portion of your mortgage payment related to interest is deductible.
2007-01-20 08:34:43 · answer #3 · answered by jseah114 6 · 2⤊ 0⤋
If you do not reside there and it is rented, it is a business. There fore the mortgage is a business expense..Check the IRS booklet at the Post Office.or library...
2007-01-20 08:41:29 · answer #4 · answered by buzzwaltz 4 · 0⤊ 1⤋
Interest only. Don't for get the other expenses associated with a rental (e.g., property taxes, etc...)
2007-01-20 08:52:16 · answer #5 · answered by Dizney 5 · 1⤊ 0⤋