If I still have a mortgage on a rental home and my tenants pay rent which I use to pay it do I have to claim as income?

[SweetieJean]

Yes you do.

[ghost]

Yes. You must report your rental property on Schedule E. You will likely show a loss due to the depreciation of your property.

[ghost]

Refer to IRS publication 527
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/p527.pdf">https://www.irs.gov/pub/irs-pdf/p527.pdf</a>

[vlrey]

Thanks

[Coleen3 · Accepted solution]

What your tenants pay you is rent and is reported as income and the mortgage is an expense against the income.

[SweetieJean]

Only mortgage interest (not principal) can be deducted.