Tax Law (Questions About Taxes)/rental property


hi John, i have a condo where i live for 5 years.  now i would like to rent it. i still have the mortgage and pay maintenance fee to our association.  i understand that if i rent the condo, it is consider income and should be reported.  can i deduct mortgage payment and maintenance as expenses?  the rent would pay the mortagage and maintenance. i  will probably make $50  income after mortgage and maintenance  are paid.


Thanks for your question.

Yes, you must report the income on Schedule E. You can also deduct expenses of the condo, including the interest on the loan, but not the full mortgage payment. You must also deduct depreciation based on the lower of your cost basis or the fair market value as of the date converted to rental.

Upon sale of the unit you will have a recapture of the depreciation. I.e., any gain represented by depreciation will be taxed at ordinary income rated.

Hope this helps.

John Stancil, CPA

Tax Law (Questions About Taxes)

All Answers

Answers by Expert:

Ask Experts


John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

©2016 All rights reserved.