How to determine rental property profit

I have have rented my house out for 4 months now, and my mortgage is $1550 a month, the renter is paying $1750 (1750x4) Is my profit 7,000 or is it the $1750 - $1550 = $200 so the $200 x 4 = $800. So is my rental profit for the property $800 for 2016? or is it the combined total that my renter has paid me for the 4 months he has been at the property?

posted

$7000 is your gross rental income. Your profit is closer to $800, but you need to take a depreciation deduction in most cases and may have other deductions.

What you should do is answer the TuroTax questions. It will walk you through the income and all of the possible expenses (not just mortgage but insurance, taxes, repairs, depreciation, etc.) and it will figure out your actual profit (or loss). And if a loss, whether that loss can reduce your other income.

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