Tax Year Prior to 2020: Reporting rental income

You will report the total gross that your tenant paid you.  Then, you will depreciate the property and deduct mortgage interest, real estate taxes, and other expenses.  The actual mortgage payment itself is not reported anywhere.  (see below for more)

This article on Real Estate Tax and Rental Properties has more details on rental properties that will be very helpful to you.

You will claim the full amount of every dollar you receive as rent, including any taxes you collect (if any). Then, you deduct the mortgage interest, real estate taxes, and other expenses.  You will also enter the rental property as an "asset" and depreciate it over a 27.5 year period.  The method of deprecation would be called Straight Line.

Your rental income and expenses will go on the Schedule E.

Typical deductible expenses include, but are not limited to:

• Cleaning and cleaning supplies
• Maintenance and related supplies
• Repairs
• Utilities
• Insurance
• Travel to and from the property
• Management fees
• Legal and professional fees
• Commissions
• Taxes and tax return preparation
• Lease cancellation costs
• Advertising
• Real estate taxes
• Mortgage interest - Note: You cannot deduct the mortgage payment; only the interest is deductible.

Where to enter rental income and expenses?