Income property tax deduction

[bredalrv]

Hi, need help with income property tax deduction in California we are thinking of buying a Townhome and renting it out wanted to find out more about tax deduction can we deduct the loan amount not just the interest? and property tax with local propositions? 

Thanks

[DDollar · Accepted solution]

If you have a rental property, you can deduct the expenses related to the property.  Those expenses include property taxes (including local propositions), and mortgage interest.  You cannot deduct the principal portion of your loan payments.  You can also deduct maintenance and upkeep, repairs, etc.

For more information see IRS Pub 527 - Residential Rental Property

[bredalrv]

Thanks