I have a house that I rented out last year. To get a zero income result on Schedule E it will be enough to include the real estate tax and the depreciation as my rental expenses (which would exceed the rental income). But I still have additional mortgage interests which, if reported on Schedule E, will not change the bottom line for me. My question is, may I report this mortgage interest on Schedule A? This is in relation to your message below where you said "you are only allowed an itemized deduction for your main house and ONE additional residence". This is the ONE additional residence indeed. If I can, it would add up my Schedule A figure so that it will be a good choice to itemize (rather than take the standard deduction). Thank you very much. [FYI, the house will be for my second home next year when I move between 2 cities.]
