Income from Rental Property

• When you have rental property, you need to keep track of all the money your tenants pay you. This money is considered income and is accounted for on your tax return.
  
  

Expenses Incurred

• You also need to track all your expenses for the year from your rental property. This includes large expenses, such as insurance, taxes and mortgage payments. However, it also includes small sums, such as advertising to fill vacancies and repairs on the property.
  
  

Depreciating the Property

• Another form of expense for your rental property is depreciation. This is a method of accounting for the property depreciating, or losing value, over several years. This also reduces your taxable income from the property.