When you own a rental property the IRS considers all of the rent income coming in as income just as if you were working a job. So if your income is $50000 a year and you take in $20000 in rent from the property your income according to the IRS is now $70000.
If you are working with a management company you will receive a 1099 form at the end of the year showing this income. If you are managing the home yourself you need to manually claim this income. However all expenses and fees associated with the rental property subtract from this income amount. This includes the mortgage, HOA, utilities, repairs, property management, leasing fees, etc.
If you work with Real Property Management we will send you a profit and loss statement itemizing these deductions, if you are managing yourself you need to keep all the receipts and invoices …