Another stupid tax question for rental property....

[88CRX]

This year I was able to bring in extra rental income off the property and the mortgage is starting to work its way down so my month mortgage payments are approximately 50% towards principal and 50% towards interest.

Am I right in doing my taxes to claim my entire monthly income off the rental (let’s say $1500/month) and then I only deduct the interest paid on the mortgage (say $500/month is interest) and then I’m left with $1000/month that I then pay income tax on at the end of the year? I’m also writing off property tax, insurance and condo fee’s so it’s more like $700/month net income but is that right?

[benyl]

Yup.

There should be a work sheet for doing all of this.

[88CRX]

Originally posted by benyl
Yup.

There should be a work sheet for doing all of this.

Yea I have it all sorted out through quick tax but just wanted to be sure.

[pheoxs]

Originally posted by 88CRX


Yea I have it all sorted out through quick tax but just wanted to be sure.

Sounds about right, only difference is if you are living there (roommates) you can only deduct a % of the interest/taxes/condo fees etc.

If it is strictly a rental then you are correct yup

[Xtrema]

Property tax, condo fee and insurance only cost you $300? That's sounds low.

But you are on the right path in calculation.

[mr2mike]

Yep but make sure you're not including your own primary residence area in that. Like what pheoxs said.