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Brannon
New Member

I have rental income. The rentals have mortgage payments. Can I count my mortgage payments as a deduction?

I have 2 rental properties.  I have mortgage payments on both properties.  I pay more in mortgage payment, taxes, insurance and, operating costs than I receive in mortgage payments. I am charging the correct amount for rent. I don't make a profit on either property. I have a property manager but all they do is collect the rent payment and send it to me.  I make all the decisions on repairs, maintenance, I payment of taxes and insurance.

One property is upside down so I can not sell it and break even due to market conditions.  The other has equity but is titled to multiple people and they will not sell or buy me out because they don't have enough income and they plan on living in the property with in 5 years.

It is not right that I have to pay income taxes on a property that I take a loss on. Where do I deduct for mortgage payments? 


Thank you

1 Best answer

Accepted Solutions
WillK
Level 9

I have rental income. The rentals have mortgage payments. Can I count my mortgage payments as a deduction?

The rental income is the total amount you receive from all sources for the rental. When you enter the information into the program you will enter under income the total amount you received for the rental. You will also be asked later in the program to enter in all the expenses (including mortgage interest for the property. This will reduce your rental income and properly calculate the profit/loss of the rental.   

To enter in your rental information, please follow the steps below:

1. Login to your TurboTax Account

2. Click Continue your return if you have already started a return. 

3. Click on Go to Federal Taxes heading 

4.  Click on wages and income (you can either Choose Jump to Full List -or I'll choose what I work on) 

5. Scroll way down to Rentals and Royalties- click on start or update 

6. Follow the interview questions and answer accordingly, you will eventually get to a screen that will say 'Let Us Enter Your Rental Info for You' (check the last circle to enter my rental info myself) 

7. Rental Income - click Start or Update- complete this section

 8. Expenses - click Start or Update- complete this section 

9. Assets/Depreciation - click Start or Update- complete this section 

10. Vehicle Expenses - click Start or Update- complete this section Remember you will need to enter in the total rent you received for the year, then you will enter in your expenses (i.e. mortgage interest, repairs, property tax, etc...) 

You are only able to deduct the mortgage interest, not the principal. When you depreciate the cost of the rental, that will take care of the principal part. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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1 Reply
WillK
Level 9

I have rental income. The rentals have mortgage payments. Can I count my mortgage payments as a deduction?

The rental income is the total amount you receive from all sources for the rental. When you enter the information into the program you will enter under income the total amount you received for the rental. You will also be asked later in the program to enter in all the expenses (including mortgage interest for the property. This will reduce your rental income and properly calculate the profit/loss of the rental.   

To enter in your rental information, please follow the steps below:

1. Login to your TurboTax Account

2. Click Continue your return if you have already started a return. 

3. Click on Go to Federal Taxes heading 

4.  Click on wages and income (you can either Choose Jump to Full List -or I'll choose what I work on) 

5. Scroll way down to Rentals and Royalties- click on start or update 

6. Follow the interview questions and answer accordingly, you will eventually get to a screen that will say 'Let Us Enter Your Rental Info for You' (check the last circle to enter my rental info myself) 

7. Rental Income - click Start or Update- complete this section

 8. Expenses - click Start or Update- complete this section 

9. Assets/Depreciation - click Start or Update- complete this section 

10. Vehicle Expenses - click Start or Update- complete this section Remember you will need to enter in the total rent you received for the year, then you will enter in your expenses (i.e. mortgage interest, repairs, property tax, etc...) 

You are only able to deduct the mortgage interest, not the principal. When you depreciate the cost of the rental, that will take care of the principal part. 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
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