If we rent our condo at a price less than the combined cost of our mortgage, parking space, management fees, and condo association dues, can we deduct the difference on our tax returns?

[matthew-pelligri]

Is there a form to fill out for rental income?

[IsabellaG]

If you are renting your condo at less than a fair rental price, you can  only deduct your expenses up to the amount of income. In other words, you can't deduct the difference on your return. The IRS only allows losses if they were from an activity engaged in for profit.

If this is fair rental value, you can claim a rental loss on your return, limited to $25,000, and subject to Modified Adjusted Gross Income phase-out limitations.

In either case, you need TurboTax Premier Online to report your income and expenses. You would enter your information in the Federal section, under Rental Properties and Royalties (Schedule E).

See IRS Publication 527, Chapter 5.