rental property and tax filing?

You may only deduct the interest portion of your mortgage payments actually paid during the year. The other expenses are deductible. With a rental property, you will also need to depreciate your basis in the property and any appliances you've bought and installed as well. Failure to depreciate will cause significant tax problems for you when you sell it. If you don't know what these words mean, hire a CPA or EA to do your tax work.

Hire a CPA to do your taxes. That way, you know they are done correctly and the portion that you pay for the rental property is a deductible expense against next year's income.

FYI, you canno deduct the principle amount of your mortgage payment, only the interest. You also need to take the depreciation because you have to claim it as income when you sell the property regardless if you claimed it or not on your return

Schedule E.

However, it is a little more complex.

The entire mortgage payment is not deductible. Only the interest portion is. The principal is not.

However, you are also allowed to claim "depreciation" on the condo.

Normally, losses of up to $25k can be claimed on rental property as long as you do not file as Married-Filing Separately and your income is under $150k.

Usually, when someone has a rental property, the days of doing their own tax return are over. It is time to see a tax professional.

Schedule E ... but I would suggest using something like TurboTax or other software which will step you through the questions and fields to enter if you do not use a tax preparer. Based on what you said, you are about break even though be sure to include all expenses associated including (if it's not next door) you mileage to and from to check on it, depreciation, maintenance costs, etc.

When you say "Mortgage", you can only deduct the interest you paid on the mortgage. The depreciation will help offset the principal portion.

When you say "Mortgage taxes insur/year" are you including the whole mortgage payment? The part that goes to principal is not deductible. You show the rental income and deductible expenses including depreciation on a schedule E. If that comes to a loss, it can offset other income.

Normally you would be able to use Turbo Tax or another popular tax program to complete your income tax.

Normally these tax programs would ask you questions that you would answer. Once you answer these

questions the tax program would default the results.

If you are not able to correctly answer these questions you might miss a deduction you would be entitled to.

With you asking these type questions, I would suggest you use the services of a local tax preparation

company. Your using one of these companies would be tax deductible.

This company would be able to take all the deductions you are entitled to. You would be required to present receipts of all cost you were required to pay to maintain the condo as a rental.

You might be entitled to deductions in prior years you failed to deduct. This company would be able to make a determination as to if you are able to file an amended year tax to get a refund you failed to take advantage of.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

water and sewer combined cost abot 3/4ths of a cent per gallon....I suppose you can pay 200 bucks to a plumber to fix the pipe....you using almost a million gallons of water....do you pay rent or do you pay a mortgage FUNNY...the question looked different when I answered it.....ok, whatever 15 thousand in rent 13,500 mortgage...why do you pay rent if you own...why do you pay a mortgage if you rent.....sorry, all things considered your stupid question far out ways my answer

maybe - you would also have depreciation