Is the mortgage payment for a rental property considered an expense? Can it be deducted and where?
2007-03-28 06:33:41 · 5 answers · asked by haigp 1 in Business & Finance ➔ Renting & Real Estate
Maybe an accountant is swimming around somewhere here but in the meantime you can look at the link below.
Off the top of my head, I do not believe that you can deduct the mortgage. You may not even be able to deduct the interest depending on your homeowner status. The answer above is not correct because it depends on whether you own your primary residence. I cant say I have a lot of conviction in this answer though. You should talk to an accountant.
2007-03-28 06:45:06 · answer #1 · answered by sothere! 3 · 0⤊ 0⤋
Only the interest portion of mortgage payments is allowed as an expense on your tax return. You'll find it listed as line 12 on Schedule E of the federal 1040 form. You may ocassionally see amortization listed under other expenses (line 18), but this is for amortization of other items (washer/dryer, refrigerator, etc.), not for the building itself.
Keep in mind that the government lets you deduct depreciation (straight-line over 27.5 years), which offsets taxable rental property income significantly from actual cash flow. Hope that helps.
2007-03-28 06:56:11 · answer #2 · answered by Marko 6 · 0⤊ 0⤋
Interest, taxes & operating expenses are deductible against income on Schedule E. You should also depreciate the property correctly. This is not for a novice to try. Contact for professional help.
2007-03-28 10:00:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
The interest is an expense. So is the insurance and taxes if they are part of your mortgage payment. Payment on the principle is not an expense.
2007-03-28 07:18:57 · answer #4 · answered by Roger C 5 · 0⤊ 0⤋
no, only your interest part of the mortgage, like in a regular house
2007-03-28 06:39:33 · answer #5 · answered by burga kiiong nocca 2 · 0⤊ 0⤋