Is the monthly mortgage payment itself an expense for a rental home?

[ecreegan]

Hi,

Is my monthly mortgage payment an expense for a rental home?

The rent barely covers costs if this is included.

Thanks

[VolvoGirl]

No, just the interest you can expense.  You have to depreciate the actual cost of the house over 27.5 years.  You add the house as an Asset.

IRS Brief overview of depreciation….

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/A-Brief-Overview-of-Depreciation

See IRS publ 946 for Depreciation

http://www.irs.gov/publications/p946/ch01.html#en_US_2010_publink1000107337

[KrisD15]

The interest on the payment only.