Taxes & Rental Income what to report?

[Nicholas Glatter]

Hey everyone.

I’ve been reporting my rental income for the past year now so no issue there.


But, my mortgage is 2700 and the rent charged to the tenant is 3250. Do I report the entire amount $3250 as income or just the difference between the two: $550? 

I’ve been reporting the entire amount each year. 

[Linda Weygant]

Quote from @Nicholas Glatter:

Quote from @Tim J.:

How did you do your taxes last year?  Schedule E is pretty straightforward.  I suggest you use an accountant or software like TurboTax.

Last year I reported the entire amount so 3250. It just seems odd since almost 95% of that money is going to the mortgage that it would be classified as income when I don’t see it as a realized gain.

 Hi Nicholas,

You report the entire amount you received - including utility reimbursements, repair reimbursements, etc - as income.

You then can deduct the following:

Advertising
HOA Fees
Mortgage Interest
Property Tax
Insurance
Property Mgmt
Repairs
Utilities
Depreciation

And anything else that is ordinary and necessary to generate the income you received.

Perhaps you should consider putting yourself on extension for this tax season and then engaging with a competent professional later in April to review not only the prior year's tax return, but also prepare the current year for you.

Best of luck!