If I rent my house out for 1500 but owe 1000 on the mortgage. How much do I count as income the 500 or 1000 on schedule e?

[banksfunny]

The house was rented out all of 2016.  I did not know if I multiply 1500 by 12 as the income of 500 by 12.

[MichaelMc · Accepted solution]

You must report the gross income (in your case, $1,500) from your rental property. You may then deduct all ordinary and necessary expenses, such as mortgage interest (not principal reduction), real estate taxes, repairs and maintenance, depreciation, etc.

Please follow these easy steps to enter your rental expenses:

• Type "rentals" in the search bar and click search.
• Click on "Jump to rentals."
• Continue with the onscreen interview.
• If you get to the Rental and Royalty Summary screen, Edit the rental.
• At the Review Your XXX Rental Summary screen, scroll down to Expenses, click Start/Edit.
• At the Enter Common Expenses screen, enter Real Estate Taxes and any other rental expenses. click Continue.
• At the Report Mortgage Interest screen, enter your mortgage interest. 
• Continue with the onscreen interview.