topic Rental Income while still paying the Mortgage off? Example: I have a $100k mortgage on Property A that is $50/ Month, and I get $75/month from tenant. What is the income? in Investors & landlords

Rental Income while still paying the Mortgage off? Example: I have a $100k mortgage on Property A that is $50/ Month, and I get $75/month from tenant. What is the income?

raboldm99 — Tue, 24 Feb 2026 08:25:50 GMT

Is the difference ($25) the income, or is the full tenant payment ($75) income? Additionally, if the property doesn’t have a tenant in it for 2 months, are those 2 mortgage payments ($100) considered a loss?

Re: Rental Income while still paying the Mortgage off? Example: I have a $100k mortgage on Property A that is $50/ Month, and I get $75/month from tenant. What is the income?

VolvoGirl — Sun, 10 Dec 2023 16:47:12 GMT

The mortgage doesn't matter. Your income if the full $75. Then you can deduct the mortgage interest paid as an expense and you should be depreciating the purchase price of the property, that takes care of the principal part of the mortgage. You don't report the vacant 2 months. You take the loss by just having less income to report.

Re: Rental Income while still paying the Mortgage off? Example: I have a $100k mortgage on Property A that is $50/ Month, and I get $75/month from tenant. What is the income?

Opus 17 — Mon, 11 Dec 2023 20:40:05 GMT

The payment is your gross income. Any month you don't get paid, you just have less income for the year, so less taxable profit.

Your mortgage payment is not your expense. The interest is an expense. Property taxes, casualty insurance, and utilities are also expenses. Instead of deducting the part of the mortgage payment that includes the principal on the loan, you claim depreciation on the property.