For "income" on rental house, do I list GROSS payments (monthly rent) rec'd from my tenants? Or do I only list the PROFIT I make monthly (rent - mortgage = profit)?

[BLUEDEVIL95]

I am concerned that I am overstating my "income" from rental house.  My tenants pay me $3200 per month, BUT I have a SunTrust mortgage that I pay at around $2900 per month.  So is my "income" from the rental $300 x 12 months = $3600?  Or is my "income" $3200 x 12 months = $38,400?  If the latter is true, then where do my taxes take into account my SunTrust mortgage payments that are "expenses" that allow me to be a landlord and collect rent?

[jerry2000 · Accepted solution]

You must enter the gross rent that you receive. You can NOT deduct your mortgage payments. You can deduct only the mortgage interest that you pay. The principal part of the mortgage payment is NOT a deductible expense at all and you do not enter it. All you can enter is the interest that you pay.