Yes, you have to report
the income and related expenses of your rental property in your tax return on Schedule
E. The net loss (if any) may help you offset sale profit should you decide to
sell the rental property in the future.
You can deduct the interest
on mortgage, not the full mortgage payment.
Also, rental property is considered a depreciable asset, as are major improvements such as new roofs,
landscaping, refrigerators, water heaters, furniture, and so forth.
TurboTax Premier and
Self-Employed (and Home & Business if you're using TurboTax CD/Download)
will help you handle the ins and outs of
depreciation. We'll even figure out which depreciation method gives you the
biggest tax break, based on your particular situation. See the following answer to the FAQ on
where to inter your rental income and related expenses in TurboTax.
https://ttlc.intuit.com/replies/3288530
Also see the following answer to the FAQ on what rental expense you can deduct.
https://ttlc.intuit.com/replies/4209856
[edited: 1/21/2017 | 05:40 PM PST ]
