Answer: Use the net rental income amount on Schedule E, Line 21 and add back in depreciation. Also, add back in any mortgage interest, taxes, etc. so that you aren’t ‘double counting’ them when you deduct the mortgage payment and taxes, etc. on the 1003 for your income calculation. Reference: 4000.1 II.A.4.c.xii.(I)(3)(c) History of Net […]

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