topic Can I deduct principal payments on my rental property in Investors & landlords

Can I deduct principal payments on my rental property

Sue246 — Wed, 05 Jun 2019 06:35:03 GMT

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

Only the mortgage interest can be entered as an expenses...

DoninGA — Wed, 05 Jun 2019 06:35:04 GMT

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.

Thank you!

Sue246 — Wed, 05 Jun 2019 06:35:06 GMT

Thank you!

So how to enter as an asset and then if the property is r...

Stixoffire — Wed, 05 Jun 2019 06:35:07 GMT

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 ?

Mortgage Principal is never deductible. Only mortgage int...

jerry2000 — Wed, 05 Jun 2019 06:35:10 GMT

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

Thank you!

Sue246 — Wed, 05 Jun 2019 06:35:12 GMT

Thank you!

Re: Only the mortgage interest can be entered as an expenses...

ywng — Fri, 06 Sep 2019 11:53:00 GMT

"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.

Re: Only the mortgage interest can be entered as an expenses...

Critter — Fri, 06 Sep 2019 18:14:21 GMT

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.

Re: Only the mortgage interest can be entered as an expenses...

ywng — Fri, 06 Sep 2019 20:01:02 GMT

Thank you.

Re: Only the mortgage interest can be entered as an expenses...

BekaD3 — Mon, 10 Apr 2023 00:35:29 GMT

Am i able to deduct or depreciate my asset if I have a not-for-profit rental?

Re: Only the mortgage interest can be entered as an expenses...

PatriciaV — Mon, 10 Apr 2023 13:03:07 GMT

Unfortunately, when you rent below fair market price (ie: not-for-profit), the property is considered a "second home" and few expenses are deductible.

The rental income from this property is reported as Miscellaneous Income in the Less Common Income section at the bottom of Wages & Income.

As your "second home", property taxes and mortgage interest may be included as Itemized Deductions (Your Home under Deductions & Credits). Depreciation is not available for a second home.

@BekaD3