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Berky1
New Member

I have a mortgage on my rental property. Where do I enter the mortgage payment as an offsetting expense to rent?

This is not my primary residence.  Also, I'm not asking about mortgage interest or property taxes.  I'm asking about the actual loan payment.
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tagteam
Level 15

I have a mortgage on my rental property. Where do I enter the mortgage payment as an offsetting expense to rent?


@Berky1 wrote:
....I'm not asking about mortgage interest or property taxes.  I'm asking about the actual loan payment.

I sincerely hope you are not inquiring about the amount that you pay to your mortgage lender that represents principal repayment. Only interest on the mortgage note is deductible, not your entire mortgage payment in terms of the part that represents repayment of principal.

View solution in original post

4 Replies
tagteam
Level 15

I have a mortgage on my rental property. Where do I enter the mortgage payment as an offsetting expense to rent?


@Berky1 wrote:
....I'm not asking about mortgage interest or property taxes.  I'm asking about the actual loan payment.

I sincerely hope you are not inquiring about the amount that you pay to your mortgage lender that represents principal repayment. Only interest on the mortgage note is deductible, not your entire mortgage payment in terms of the part that represents repayment of principal.

View solution in original post

AmeliesUncle
Level 11

I have a mortgage on my rental property. Where do I enter the mortgage payment as an offsetting expense to rent?

The mortgage payment is composed of two parts:  Interest, and principal.

 

As was noted, you enter the interest.

 

Principal is a portion of your purchase price.  That is done by means of depreciation.  So you enter the "asset" for depreciation, and the program will prorate that purchase amount (well, the amount of the building, not the land) over 27.5 years (in most cases).

RWM-001
Returning Member

I have a mortgage on my rental property. Where do I enter the mortgage payment as an offsetting expense to rent?

The answers given are correct.  I note that a "loan payment" could include other items such as impounded funds for insurance, property taxes, etc.  You would report each component separately.  There should be an impound statement that shows how much was paid out of the account for these expenses.  Also, check to see if you have a Form 1098 from the lender, which you should have.  It will show interest expense, also other items such as property taxes if there is an impound.

Critter-3
Level 15

I have a mortgage on my rental property. Where do I enter the mortgage payment as an offsetting expense to rent?

If the insurance and RE taxes are escrowed then they may show on the 1098 form somewhere in the info section or on the escrow disbursement statement ... so you will enter those + the mortgage interest as deductions  and the principle portion of the payment is handled thru depreciation as prescribed by the IRS.  

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