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New Member

Can I deduct principal payments on my rental property

I am listing expenses for my rental property. Is my total mortgage payment including principal a deduction, or only interest and taxes?
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Level 15

Can I deduct principal payments on my rental property

Only the mortgage interest can be entered as an expenses for the rental property, not the principal.  You should have entered the property as an Asset to be depreciated which would then cover your principal payments.

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Level 15

Can I deduct principal payments on my rental property

Only the mortgage interest can be entered as an expenses for the rental property, not the principal.  You should have entered the property as an Asset to be depreciated which would then cover your principal payments.

View solution in original post

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New Member

Can I deduct principal payments on my rental property

Thank you!
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New Member

Can I deduct principal payments on my rental property

So how to enter as an asset and then if the property is reconverted to personal property or sold - then the depreciated amounts much be recovered ? Also how long to depreciate the asset ?
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Alumni

Can I deduct principal payments on my rental property

Mortgage Principal is never deductible. Only mortgage interest and taxes.
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New Member

Can I deduct principal payments on my rental property

Thank you!
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New Member

Can I deduct principal payments on my rental property

"entered the property as an Asset to be depreciated which would then cover your principal payments"

How exactly do I enter the principal payments in assets to be depreciated?  Thanks.

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Level 15

Can I deduct principal payments on my rental property

Again the principle payments are NOT entered anywhere in the program ... you enter the cost basis of the property in the asset entry section and choose the proper category like residential rental and the program will compute the depreciation automatically based on the IRS rules.  

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New Member

Can I deduct principal payments on my rental property

Thank you.