It appears that you are receiving the correct answer but might not be clear. Your mortgage is already included when it is a part of the Cost basis of the property. You use cost to offset sales price in determining gain on the sale.
For instance, when you bought the house it cost $500,000 and you mortgaged $450,000. Since you are renting the property you are depreciating $500,000 minus land. Now when you sell the property you are claiming the cost of the property minus depreciating etc. in determining your cost basis from the sales price to determine your gain/loss.
That example has missed a lot of steps but I hope you get the idea. I hope this helps.
Check IRS Here.
@fawnallen118
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