Report home rental to a family member w no profit , my brother paysexact mortgage , wondering if this is part of line 21 ? or schedule E ? I?

Answers

curtisports2

Rents are always first reported on Sch E. You do not get to deduct the principal portion of the mortgage payment. Interest, property taxes, insurance, repairs, legal and office expense (postage, etc), depreciation. Those all count against rental income. The profit or (loss) goes on the new Sch 1, Line 17. The total from Sch 1 goes on the new 1040, Line 7.

Judy

Uh, there IS profit. The part of the mortgage that is for principal is increasing the owner's equity.

Is the mortgage payment equal to market rate? If yes, then schedule E with depreciation. Depreciation depends on value of house (not land) when first rented. Seek professional help.

Slumlord

Report it all on schedule E. If the expenses are more than rents then you get a deduction from your other income.

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