No. Mortgage payment is not used in the calculation of rental expenses ,that effects only the cash flow,.
You can not deduct the mortgage payment;You can deduct the mortgage interest. You can, and should, deduct depreciation [land is not depreciated] . If you don't the IRS will treat it as if you did. That will have very serious negative consequences when you sell the property.You will also have other expenses that you can claim, insurance, taxes and repairs.
Please complete the rental section (Schedule E) so that you will be able to claim all related expenses and depreciation [land is not depreciated] , so if any passive loss , that can be carried forth even up to the time the property is sold.However, unused losses do carry forward and can be applied to future years.
If you expenses exceed your rental income, you have a loss. If the rental income exceeds your expenses, you have a profit.
Where do I enter income and expenses from a rental property?
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