You are required by law to report all of your rental income, and all of your rental expenses. We don't get to chose here.
It is not at all uncommon for your tax liability to increase as you enter expenses for rental property. When your taxable income falls below a certain threshold, you lose credits such as the earned income credit as one example that I can recall off the top of my head. But don't worry about it. That number means *ABSOLUTELY* *NOTHING* to anyone, until you have completed your tax return in it's entirety.
If you're using Self-Employed or Home & Business and you're using the program the way it is designed and intended to be used, you haven't entered your "EARNED" income yet. So the absolute only thing that chaning refund or tax due number means is, "the program did something". That's all it means. Nothing more. Nothing less. Remember, the program can only work with the information you enter *at* *that* *specific* *point* *in* *time*. So until you have completed the tax return, ignore it.
